Sri Lanka’s Cabinet approves over Rs. 10 billion in local pharmaceutical procurements
Daily FT: The Cabinet of Ministers has approved a major procurement package aimed at strengthening local pharmaceutical production and ensuring uninterrupted medical supplies in 2025.
Speaking at the weekly post-Cabinet meeting media briefing, Cabinet Spokesman and Health Minister Dr. Nalinda Jayatissa said under the latest approval, the State Pharmaceuticals Manufacturing Corporation (SPMC) will be entrusted with the supply of 24 categories of pharmaceuticals worth Rs. 1.148 billion.
“In addition, local manufacturers who have entered into joint venture agreements with the SPMC will supply 68 categories of pharmaceuticals valued at Rs. 4.159 billion and further 62 categories of pharmaceuticals, worth Rs. 5.116 billion, will be provided by local manufacturers operating under post-purchase agreements with the Health Ministry,” he added.
The Minister said the decision builds on an earlier Cabinet approval granted on 2 December 2024, which allowed the direct procurement of 291 essential pharmaceuticals and other medical supplies for the year 2025. “Those procurements were to be secured through the SPMC, local joint-venture manufacturers, and post-purchase agreements with private sector manufacturers. However, unforeseen challenges have since emerged, including the failure or expiration of certain stocks, the need to maintain adequate reserves, and higher-than-expected demand for specific medicines,” he said.
As a result, Dr. Jayatissa said the Ministry identified the necessity of procuring additional supplies, covering both pharmaceuticals and 123 other medical items, to meet the country’s healthcare requirements.
He highlighted the latest move is expected to strengthen domestic pharmaceutical manufacturing, while reducing dependency on imports, and safeguarding essential medical supplies to serve patients across the country.
OSL take:
Sri Lanka’s pharmaceutical manufacturing industry is a business/investment opportunity in the country that is yet to be fully tapped of its full potential. Given the increasing local as well as foreign demand for pharmaceuticals, Sri Lanka presents the ideal destination for foreign businesses/investors to set up their pharmaceutical manufacturing plants. Pharmaceuticals that are manufactured in these plants could meet the increasing local demand as well as reach out to the region given the many trade agreements and concessions enjoyed by Sri Lanka with countries in the region and beyond. Sri Lanka’s geographical positioning in the Indian Ocean would also place the country at an advantageous position given the easy access to many foreign markets. Local businesses that are already engaged in the pharmaceutical manufacturing industry have successfully entered the export market and have also expanded into overseas markets indicating the growth and business potential of the industry. Foreign businesses/investors could therefore confidently explore the increasing business/investment opportunities in Sri Lanka’s pharmaceutical manufacturing industry.
| Article Code : | VBS/AT/20250924/Z_4 |