By Rathindra Kuruwita

Sri Lanka will start receiving pharmaceuticals, under the Indian credit line in the coming two weeks, Secretary to the State Ministry of Drug Production, Supply and Regulation, Dr. Saman Rathnayake, said.

Dr. Rathnayake said that Sri Lanka currently faced a shortage of 188 essential drugs.

“As with other shortages in the country, this was caused by the dollar shortage. We have been trying to purchase medicines through the aid of international organisations. And these attempts have been successful. The World Health Organization (WHO) has pledged 73 million US dollars, the Asian Development Bank (ADB) has promised 60, 73 million US dollars, and India has given us credit worth, 126 million US dollars,” he said.

Sri Lankan hospitals use over 1,500 medicines and they have stocks for over 1,350 medicines. Some of the 188 essential drugs which are in short supply, are only needed in small quantities.

“We have most of the drugs. The problem is that we didn’t order drugs last year. So, we have to order drugs we need for 2022 and we need to start ordering for 2023. We need to start opening LCs and make orders. If we do not do this now, there will be a drug shortage in 2023 too,” he said.

Dr. Rathnayake also commented on reports that the Committee on Public Enterprises (COPE) had found that Sri Lanka has received over USD 330 million, as donations, to procure essential drugs, but these funds have not hitherto been used.

The COPE Chairman said Sri Lanka had received USD 200 million in financial assistance to purchase drugs, under the Indian credit line facility. By 22 April 2022, the Health Ministry’s Drug Sub committee had only wanted medical supplies worth USD 55.5 million, which is only 28% of the Indian grant. Even by 18 May 2022, Health Ministry had wanted drugs worth USD 92.9 million.

“This is how the delay happened. Let’s talk about the Indian credit line. While, the Medical Supplies Division (MSD) plays a role here, so do the Indian companies. The State Pharmaceutical Corporation (SPC) was entrusted with the operations at our end. However, they also had to find Indian companies who would agree to be paid in Indian rupees. A company that agrees to be paid in Indian rupees must send us a document called the D-Form. We only got the D-Form at the end of May. Now the Treasury will hand over the documents to the Indian High Commission and then onward action will be taken,” he said.

Dr. Rathnayake said that Sri Lanka would start receiving Indian drugs in the coming two weeks and that they had not worked with most of the Indian suppliers who are sending medicines in the coming weeks. “We are working with new companies, new banks, so things take a bit of time,” he said.