Business
Clarification on current debate centred around the pricing of pharmaceuticals by SLCPI
The Sri Lanka Chamber of Pharmaceutical Industry (SLCPI) would like to provide the following clarifications to the general public on the ongoing debate and public discussion regarding the pricing of pharmaceuticals. There have been various misleading claims and misrepresentations made by various parties through both mainstream and social media on this subject. While some of these unfortunately are the result of ill-informed positions others are clearly politically motivated with mala fide intentions. Clearly an issue such as this needs attention but without bias and misinformation.
Therefore, we would like to provide the following clarifications in the wider interest of the general public.
Although it is being widely circulated that pharmaceuticals are governed by market forces and not price controlled, nothing can be further from the truth. Pharmaceuticals have been and remains the most rigidly price-controlled commodity in the market.
61 molecules are under gazetted price control where the maximum retail price is equivalent to the average price of all brands of the molecule. Other than these 61 molecules, all others have their initial price determined by the National Medicines Regulatory Authority (NMRA) where the price in the country of origin as well as the regional prices are considered in determining the final price. This price too is re-evaluated during the issuing of import licences every year and when registration is renewed every five years.
These 61 molecules cover more than 900 common generic/brands used to treat most chronic illnesses such as Diabetes, Heart Disease, Hypertension, and also most common Antibiotics.The 61 products where strict Gazetted Price Control is applied, account for approximately 35% of the most commonly consumed medicines according to independent IQVIA data.
With the introduction of price control with effect from 2016 ‘market forces’ no longer apply to pharmaceutical pricing.The government has allowed price increases of 5%, 14.4%, 9%, 29% and 40% respectively in order to counter the impact of the rapidly depreciating rupee. It must be noted that the final increase granted was in April 2022 and that was to bring parity when the USD was trading at Rs. 352. After that the dollar reached a peak of Rs. 372 and the pharmaceutical industry was not allowed to increase prices any further for a period of almost 10 months. The dollar deprecation only started in January 2023.
The current value of the dollar justifies a price decrease of 10% – 13% in pharmaceuticals when all factors are taken into account. This is the same price reduction the SLCPI proposed in writing to the Honourable Minister of Health. However, any price decrease at the present time must be with a proviso for a price increase if there is an appreciation of the dollar. In fact as per Central Bank data this has been happening in the last few days.
Any changes to the price of pharmaceuticals must factor in the expenses that are unique to the pharmaceutical industry such are cold chain maintenance, temperature controlling of warehouses, retail outlets and transportation. Most of these are highly sensitive to the cost of fuel and finance cost. Inordinate and haphazard delays in payments from the State Sector Agencies such as the SPC and MSD, have contributed to increased finance costs.
Although claims have been made that there have been 400% price increases in some pharmaceutical prices these remain unverified.The pharmaceutical industry has only increased prices by what has been permitted which is on average less than that of all other widely consumed commodities in the market.
For the sake of brevity, the SLCPI has listed out only the independently verifiable facts regarding the pricing of pharmaceutical products as it stands today.In conclusion, we take this opportunity to outline the only possible solution which will ensure an uninterrupted and uniform supply of high-quality pharmaceuticals to the general public.
Sri Lanka is in need of a transparent, equitable and fair pricing mechanism that is applicable to all pharmaceuticals. This has been an ongoing call to action by the SLCPI, and it has now been referred to the Court of Appeal of the country. Such a mechanism cannot be formulated by the State alone but must involve all stakeholders and be consistent with the stipulations of National Medicinal Drugs Authority Act No 5 of 2015. It would be ill advised and counterproductive in the long term for any one party, be it the government, the health care services, trade unions, religious leaders or even the pharmaceutical industry itself to be allowed to dictate the pricing of pharmaceuticals in a unilateral and /or random manner.
The implementation of a pricing mechanism is the only way to ensure the uninterrupted supply of high-quality pharmaceuticals at a fair and equitable price to the general public.
By Sanath Nanayakkare
Continuing its mission to drive inclusive economic recovery and empower Sri Lanka’s grassroots business sector, the Commercial Bank of Ceylon PLC has actively accelerated the disbursement of the Asian Development Bank’s (ADB) Enhancing Small and Medium-Sized Enterprises Finance Project line of credit.
As Sri Lanka’s premier private sector lender, Commercial Bank drives regional development by bridging financial gaps outside the Western Province. Jaffna and the broader Northern Province remain pivotal focus areas due to their immense potential for industrial regeneration, vibrant agricultural output, and entrepreneurial resilience in the post-crisis economic landscape.
Directing targeted, affordable financing enables local enterprises to overcome historical financing barriers, expand production capacity, and stimulate employment across regional supply chains.
Quality at the Source: ADB Country Director Shannon Cowlin inspects a bottle of premium sesame oil at the New V.S.P. Gingelly Oil factory floor in Jaffna. Working capital facilities extended through Commercial Bank under the ADB line of credit enable manufacturers like Harish Industries to meet growing wholesale and retail demand across Sri Lanka while securing long-term economic resilience.
The dedicated credit scheme offers affordable interest rates to help small and medium-sized enterprises (SMEs) rebound from recent macroeconomic shocks, maintain employment stability, and build long-term sustainability. Designed to target underserved segments, the funding line prioritizes viable enterprises located outside the Colombo district, women-owned and women-led businesses, and ventures incorporating strong climate finance components. Eligible sectors span manufacturing, agriculture, animal husbandry, technology, tourism, and direct export industries.
A standout beneficiary showcasing the transformative impact of this regional focus is Harish Industries, a flourishing manufacturing firm located within the purview of Commercial Bank’s Manipay branch in Jaffna. Owned and operated by proprietor Ponnuchamy Prabakaran, Harish Industries manufactures premium sesame oil under the popular brand name “New VSP Gingelly Oil”.
The working capital facility extended by the line of credit to Harish Industries helped to cater to short-term liquidity needs, ease out cash flow pressure, and operate the business in a sustainable manner.
Additionally, this financial backing helped create more employment opportunities, strengthen its supply chain, and expand business operations to meet growing wholesale and retail demand across Sri Lanka.
by Sanath Nanayakkare
True corporate leadership extends far beyond financial metrics and market dominance. For the Commercial Bank of Ceylon – recognised as Sri Lanka’s top-ranked bank in the 2026 edition of The Banker’s Top 1000 World Banks and the country’s first 100% carbon-neutral bank—true progress means investing directly in the nation’s ecological health.
On 19 September, the Bank demonstrated how a massive institutional infrastructure can be mobilised for the greater good.
Marking International Coastal Cleanup Day 2026 under its “Forward Together for a Cleaner Future” platform, the Bank brought together employees, corporate management, customers, and volunteers for a coordinated national conservation initiative spanning 20 locations.
What sets this effort apart is its deliberate breadth. The campaign moved far beyond a conventional beach cleanup by integrating 16 coastal sites – including prominent Colombo locations like Mount Lavinia, Wellawatte, and Galle Face, alongside regional spots from Point Pedro to Dondra – with four vital inland waterways, such as the Mahaweli River at Polgolla Dam and Parakrama Samudraya. This structural reach ensured that even inland communities could actively participate in a unified national environmental mission.
This massive undertaking was anchored by robust partnerships, working alongside the Marine Environment Protection Authority (MEPA) as the technical partner and the United Nations Global Compact (UNGC) Network Sri Lanka. By translating its formal 2025 adoption of Sustainable Development Goal 6 (Clean Water and Sanitation) and its role as a UNGC Patron into boots-on-the-ground volunteerism, the Bank bridged high-level environmental policy with grassroots action.
Ultimately, Commercial Bank’s nationwide mobilisation proves that when a premier financial institution harnesses its expansive network, corporate responsibility stops being a theoretical framework and becomes a tangible, community-driven force for a cleaner future.
The grand halls of the Taj Samudra in Colombo buzzed with a distinct energy on the morning of September 25, 2026, as leaders gathered for the National Celebration of World Tourism Day.
Yet, beneath the formal discussions on digital agendas and artificial intelligence, a deeper, more vibrant narrative was quietly unfolding. This was not merely a story of algorithms and automated efficiency; it was a human story – a tale of Sri Lanka’s youth stepping forward to redesign the future of hospitality.
For generations, Sri Lanka’s allure has been rooted in its timeless landscapes, golden shores, and the legendary warmth of its people. But as global travel evolves, a new generation of tech-savvy local innovators is finding ways to weave cutting-edge technology into the rich tapestry of Sri Lankan culture. This shift took center stage during the Tourism Start-Up Competition 2026, held under the theme “AI-Driven Innovation for the Future of Tourism”.
Out of 52 competitive applications spanning tertiary and commercial levels, young minds proved that technology and tradition can go hand in hand.
The twenty-five shortlisted teams stood before expert panels to defend visions that bridge the gap between ancient heritage and modern data intelligence.
Behind every submitted AI solution was a young entrepreneur eager to protect local destinations, enhance visitor experiences, and elevate service delivery.
When the twelve winners were finally honoured, the celebration transformed into something much greater than an awards ceremony.
It served as a powerful reminder that the true engine of Sri Lanka’s digital transformation is its youth. Armed with code, creativity, and a profound love for their country, these young visionaries are ensuring that when travelers explore Sri Lanka, they do not just witness the future – they feel the heartbeat of a new, digitally empowered era of hospitality.
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