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.
In a world where every strong cuppa tells a unique story, Sri Lanka’s famed Ceylon Tea continues to carve its legacy – one cup at a time. The latest tea export figures for March 2025 reveal a tale of resilience, with total shipments rising to 23.43 million kilograms, up from 21.25 million kgs the previous year.
But the real headline is; Libya’s staggering 416% surge in Ceylon Tea imports – marking a bold new chapter in Sri Lanka’s tea trade. While traditional markets like Iraq and Russia held steady, Libya emerged as the ‘breakout star’, importing 5.31 million kgs in the first quarter of 2025 – a jaw-dropping leap from just 1.03 million kgs in 2024.
This explosive growth signals a burgeoning demand for Sri Lanka’s premium leaves in North Africa, where the rich, aromatic flavors of Ceylon Tea are winning hearts and palates.
Quadrupling Libya’s appetite for Ceylon Tea even in challenging global markets, is reflecting the fact that Sri Lanka’s tea can find loyal fans in evolving markets.
However, while the export values shine in USD terms, the rupee value of tea exports dipped slightly – a stark reminder of currency fluctuations impacting export earnings. Yet, the broader trend remains positive for Ceylon Tea, with cumulative exports for Q1 2025 reaching 63.21 million kgs, up from 62.33 million kgs last year.
Key markets like Iraq (+7%) and Chile (+41%) showed strong growth, while Russia and the UAE saw mild declines. Meanwhile, Tea Bags and Instant Tea have posted gains even in rupee terms – marking a bright spot in an otherwise mixed landscape, where Tea in Bulk and Green Tea segments have witnessed a decline against the same period of the previous year.
On the production front, tea production for the month of March 2025 totalled 24.43 M/Kgs, showing an increase of 4.86 M/Kgs vis-à-vis 19.57 M/Kgs of March 2024. All elevations showed an increase in comparison with the corresponding month of 2024.
“As Sri Lanka’s tea industry navigates global headwinds, the increase in production and Libya’s soaring demand could offer a breather,” analysts said.
(Source: Forbes & Walker Pvt Ltd, Sri Lanka Customs, Central Bank of Sri Lanka)
By Sanath Nanayakkare
Photo Credit: Sri Lanka Executive Aviation Services
In a groundbreaking collaboration set to transform Sri Lanka’s premium coffee landscape, Fits Retail has partnered with retail giant Abans PLC to showcase the iconic DeLonghi coffee machines at two of Colombo’s most prestigious locations: Abans Elite Colombo 3 and Abans Havelock City Mall showrooms.
This exclusive partnership presents a rare opportunity for coffee aficionados to experience firsthand why DeLonghi has become synonymous with coffee perfection worldwide.
With a heritage spanning over 100 years, DeLonghi proudly holds the title as the number one coffee machine brand in more than 46 countries, celebrated globally for its exceptional quality, innovation, and unrivaled Italian craftsmanship. Fits Retail’s collaboration with Abans PLC brings these legendary machines directly to Sri Lankan coffee enthusiasts, creating immersive experience zones designed to elevate everyday coffee moments into extraordinary rituals.
At these dedicated demonstration zones, visitors can discover the unparalleled precision engineering and user-friendly technology that have made DeLonghi machines the preferred choice for discerning coffee lovers in more than 46 countries worldwide.
Business
Ceyline Group and Lion Brewery Forge a Sustainable Future with Eco-Friendly Warehousing and Distribution.
Ceyline Total Solutions, the end-to-end logistic solutions provider of Sri Lanka’s leading maritime and logistics group Ceyline, has built Lion Brewery’s first sustainability-focused warehousing and distribution center in just 100 days.
Located in Tangalle, the facility reflects a strong commitment to environmental responsibility. Half of the structure is made from repurposed shipping containers, reducing both waste and carbon emissions. The project, executed by Ceyline’s brand for sustainable living spaces “Out of the Box” features interior fittings made from recycled and reused brewery waste materials, maximizing sustainability and cost efficiency. Ceyline also has already applied for CEB approval to install solar power for the facility to ensure its operation is powered by clean and green energy.
Lion Brewery will further its mission for an efficient and eco-friendly supply chain by incorporating elements such as electric forklifts, rainwater harvesting, and energy-efficient lighting.
This collaboration not only delivers a pioneering green logistics facility but also sets a new benchmark for sustainable warehousing in Sri Lanka. It showcases the power of collaborative innovation in driving responsible industrial development.
Kaveen Gayathma, Senior Vice President (Outbound Logistics) of Lion Brewery, added, “This project further strengthens our distinctive ‘route-to-market’ approach. Our collective efforts in conceptualizing,
drafting, and crafting have culminated in the creation of a truly one-of-a-kind model. The company’s unwavering commitment to environmental stewardship and sustainability is clearly demonstrated here, all while achieving our strategic objectives in a practical and cost-effective manner.”
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