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.
Sri Lanka’s Ministry of Industries and Entrepreneurship Development Secretary Thilaka Jayasundara voiced confidence yesterday that warming U.S.-Russia relations could catalyse economic opportunities for Sri Lanka, during a forum hosted by the National Chamber of Commerce.
Speaking at the ‘Russia-Sri Lanka Development of Trade, Economic, and Banking Cooperation’ event, Jayasundara, a seasoned official with experience across multiple political administrations highlighted that eased secondary sanctions resulting from improved Moscow-Washington dialogue could unlock favorable trade conditions for Sri Lanka. Her remarks drew visible approval from Russian Ambassador Levan Dzhagryan, seated nearby.
“Sri Lanka’s balanced, neutral foreign policy positions us to benefit from any collaborative outcomes of U.S.-Russia talks,” she asserted, underscoring the nation’s potential to leverage evolving geopolitics for trade and investment gains.
Jayasundara didn’t miss the opportunity to urge Sri Lankan trade chambers to collaborate with the Export Development Board (EDB) to diversify exports and maximise foreign exchange earnings.
“Businesses and banks present here should explore to forge stronger B2B linkages for mutual benefit at the breakout sessions,” she added, referencing discussions at the forum that connected SMEs and large firms in agriculture, fintech, pharmaceuticals, industrial manufacturing among other sectors.
The secretary’s optimism aligns with Sri Lanka’s broader strategy to navigate global economic headwinds by capitalising on diplomatic shifts and expanding its export portfolio.
According to the EDB, the total export value from Sri Lanka to Russia was USD 144.25 Mn in 2023 and total imports from Russia to Sri Lanka for the same period were USD 393.55 Mn. Official data for 2024 remains pending.
The Russian delegation that took part in the B2B meetings was headed by Dr. Alexander Rybas, Trade Commissioner of the Russian Federation.
By Sanath Nanayakkare
Hemas Hospitals has proudly partnered with the JOE-PETE Big Match 2025 as the official healthcare provider, continuing its strong tradition of supporting community events and ensuring the safety and well-being of all participants and spectators.
As one of Sri Lanka’s most anticipated annual school cricket encounters, the JOE-PETE Big Match brings together passionate fans, students, and alumni from St. Joseph’s College and St. Peter’s College. With thousands expected to attend, Hemas Hospitals steps in once again, marking its fifth consecutive year of involvement, to provide expert medical support on-site.
“As a leading private hospital network, we’re proud to be a part of this iconic event. Our partnership reflects our commitment to community health and to being there where it matters most,” said Dr. Pradeep Edward, Director General Manager, Hemas Hospital Thalawathugoda. “We want all attendees to enjoy the event with peace of mind, knowing that their health and safety are in good hands.”
During the match days, Hemas Hospitals will deploy on-site medical teams, ambulances, and a qualified sports medicine medical officer to respond to any health emergencies or injuries. From first aid to injury management, the team is equipped to handle a wide range of situations with the efficiency and professionalism that Hemas is known for.
“Our practice of having highly trained medical staff and emergency support continues,” said Anjana Cramer, Business Development Manager. “Our aim is to be proactive, responsive, and accessible throughout the event.”
In addition to healthcare support, Hemas Hospitals will have a strong brand presence at the event, with Hemas flags, A-boards, a branded ambulance, and the medical team visibly positioned throughout the grounds.
“We want this partnership to not only represent medical readiness but also our larger message of promoting health and unity through sport,” said Duwayne Rozario, Executive – Business Development. “It’s about more than just treatment, it’s about being an active part of the community.”
Weddings on the beach, an aqua platform to be served dinner in the sea; four ocean pavilions, informal camaraderie, more so, come as you are atmosphere for informality and bonhomie un matched in any resort.
What are we talking about? Just a cautious; yet unavoidable blend for a holiday; and an atmosphere of ‘let yourself go’, experience unmatched in a resort hotels.
Where are these ‘happenings’? At the Sun Siyam Pasikudah.
Just so, assuming you’ve been to the Maldives, and factually, it’s a demand driven destination, to the US, so too, we assume, Sun Siyam Pasikudah is a growing destination for holidays in the warm waters of the Indian Ocean surrounding the East coast of this island.
Why surrounding? Simple; just that Sun Siyam Pasikudah perched by the sea, apart from the warm waters bordering the resort; we are also of the positive atmosphere of the shallow sea abutting the picturesque appeal viewed from the sea. Appealing to tourists already enjoying the numerous attractions of this resort facility.
Our observations were French, Germans and other Europeans were already enjoying the facilities of Sun Siyam Pasikudah.
General Manager Arshed Refai was on hand to give us detailed explanation on facilities guests could expect and enjoy and numerous offerings that appeal for long stays. Quite regularly, he said, guests are quite reluctant to depart. Particularly Europeans who we observed enjoying the sun and more so walks along the beach.
Additionally, Ministry of Tourism provided train services as well to encourage tourist traffic to the East to enjoy the growing popularity of this resort and other resorts we observed in the area.
GM Refai further said the dining experience, and varied choice of cuisine catered to each national from West to East; which, he said, was quite in order to cater to choices in food and individual taste desires.
Originally launched in 2014 as Sun Aqua Pasikudah, the property underwent a rebranding in 2020, becoming part of Sun Siyam Resorts Collection and adopting the name of Sun Siyam Pasikudah. ‘Was it popular among local tourists’? He responded positively that its appeal was growing, related to the chain of other destinations in the East. Additionally, its popularity and appeal, particularly to its chalets and Five Star luxury was in reality not an available concept elsewhere.
Chef Dilan Jayasundera, explained varied cuisine and food flavours he was adept in producing to ensure guests were not in need, food vice.
He further said a broad cross section of tastes was catered to.
Asst General Manager Keerthi expanding on additional facilities said 34 rooms were villa style accommodation spread over the land. Four ocean pavilions complemented a formal atmosphere.
GM Refai further said 90 guests at peak accommodation enjoyed international cuisine.Excursions, to the fish market, sea observations in glass bottom boats to observe fauna and flora under water, including the varied amphibian fish population were of great appeal.
Questioned on any Maldivian influence, he said, Sunsiyam was not influenced by the Maldives, but its style was of broad appeal.
The resort’s transformation showcases bold monochromatic interiors balanced with rich golden tones, creating a unique, sophisticated, and chic environment. The resort offers distinct culinary adventures, immersing guests in Sri Lanka’s vibrant flavors and colonial traditions. Noteworthy options include The Cellar, Sri Lanka’s largest wine cellar on the eastern coast, the Tea House with an extensive tea collection for a delightful tasting journey, Slice & Grill, a fast-casual poolside concept with a retro design, and the Beach Shack, a tropical paradise with Caribbean vibes.
By Steve A. Morrell
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