Sri Lanka gives Rs. 44 billion boost for locally manufactured medicines
Daily FT: The Government has approved the procurement of medicines and medical supplies worth over Rs. 44 billion from local manufacturers, aiming to address shortages in hospitals and clinics, while giving a boost to the pharmaceutical industry.
The decision follows recommendations by the Standing Procurement Committee appointed by the Cabinet of Ministers.
The procurement plan is based on approvals granted at the Cabinet meeting on 14 October 2024 targeting a one-year supply of locally manufactured medicines.
The Health Ministry prepared these four procurement lists to ensure seamless delivery which includes; medicines supplied by the State Pharmaceuticals Corporation (SPC), products from local producers in joint ventures with the SPC, supplies under easy purchase agreements with the Health Ministry and supplies from newly identified local producers currently not under agreements.
Approval awarded for procurement for over 330 types of medicine:
• To award the procurement of supplying 42 types of medicines to the SPC for an amount Rs. 5,398.83 million.
• To award the procurement of supplying 131 types of medicines to the local producers that have signed the joint venture agreements with the SPC for an amount of Rs. 16,611.42 million.
• To award the procurement of supplying 36 types of medicines to the local producers that have signed the easy purchase agreements with the Health Ministry for an amount of Rs. 9,022.10 million.
• To award the procurement of supplying 130 types of medicines to the newly selected 24 local producers for an amount of Rs. 13,374.65 million.
Speaking at the weekly post-Cabinet meeting media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa opined that the move will provide an opportunity for the local drug manufacturers to expand their production, reduce dependency on imports and encourage investments in the pharmaceutical sector.
“This initiative not only addressed medicine shortages countrywide, but also strengthened the local pharmaceutical industry,” he said.
OSL take:
The overall economic expansion currently being witnessed in Sri Lanka has resulted in the growth in business/investment opportunities in several key economic sectors including the health sector. Sri Lanka’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with many other foreign countries have helped boost Sri Lanka’s health industry, especially in the field of pharmaceutical manufacturing. Local authorities have already assigned a dedicated pharmaceutical manufacturing zone with incentive schemes to attract foreign investments to the sector. It is in such a backdrop that the Sri Lankan government has taken steps to further boost the local pharmaceutical manufacturing sector. All these indicate the expanding business/investment opportunities in the country’s health industry, especially in the pharmaceutical manufacturing sector. With Sri Lanka’s pharmaceutical manufacturing sector showing a steady growth with a further growth and business potential, foreign businesses/investors could confidently explore the expanding opportunities in the sector whole also looking at forming partnerships or joint ventures with local businesses in the sector in order to further expand operations. These expansions could be carried out locally as well as internationally.
| Article Code : | VBS/AT/20241209/Z_3 |