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State Minister admits difficulty in tackling ‘Medicine Mafia’

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It was extremely difficult to streamline the procurement process, State Minister of Pharmaceutical Production, Supply and Regulation Prof. Channa Jayasumana has told the ITN.

Prof. Jayasumana alleged that organised groups made massive profits at taxpayers’ expense through overpricing and excess orders. He, however, said some progress had been made in tackling the problem since the change of government in 2019.

Responding to interviewer Dasun Wasantha, Prof. Jayasumana explained how a section of the medical community was part of the lucrative racket.

The state minister explained how those in authority manipulated the procurement, storage, and distribution systems for their advantage. Prof. Jayasumana alleged that as waste, corruption and irregularities had been taking place with impunity for a long time it would not be an easy task remedy it.

The state minister claimed that streamlining of processes helped the government to save as much as Rs 3.5 bn since he took over the newly created State Ministry. Inquiries had revealed various medicines available at stores of a particular hospital could be distributed among wards to indicate an immediate requirement, Prof. Jayasumana said, underscoring the urgent need to introduce new systems to close loopholes.

The state minister alleged that unscrupulous persons working in unison with those in the public sector created artificial shortages for their benefit. Commenting on continuing import of inferior cosmetics, Prof. Jayasumana explained how those manipulated the regulatory process to enable the market to be flooded with extremely poor-quality items. The state minister did not mince his words when he discussed how some doctors, too, contributed to corrupt practices.

Without naming the former Health Minister Dr. Rajitha Senaratne, Prof. Jayasumana flayed the medical administration during the Yahapalana government with the focus on how cancer patients and their families had been brazenly fleeced. There had been instances where what could be purchased for Rs 10,000 marked up as much as Rs 135,000 to 140,000, the state minister said, claiming that one questionable transaction alone was estimated at Rs 840 mn (SF)

 

 



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Prime Minister participates in high-level bilateral meetings at World Economic Forum

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Prime Minister Dr. Harini Amarasuriya participated in a series of high-level bilateral meetings on January 20 on the sidelines of the 56th Annual Meeting of the World Economic Forum in Davos-Klosters, Switzerland.

The Prime Minister attended a productive bilateral meeting with Mr. Jozef Síkela, European Commissioner for International Partnerships. During the discussion, both sides focused on strengthening Sri Lanka–EU cooperation and advancing mutual interests.

Prime Minister Amarasuriya also met with Mr. Masato Kanda, President and Chairperson of the Board of Directors of the Asian Development Bank (ADB), at the WEF Congress Centre. The meeting provided an opportunity to discuss ongoing engagement and future collaboration between Sri Lanka and the ADB.

In addition, the Prime Minister held discussions with Mr. Hassan El Houry, Chairman of Menzies Aviation, where opportunities for collaboration in aviation services and connectivity were explored.

The Prime Minister also participated in a high-level dialogue at the Global Tourism Forum held at the Euronews Hub, Piz Buin, Davos, as part of the World Economic Forum engagements.

Dr. Anil Jayantha, Minister of Labour, and the Deputy Minister of Finance were also present at these meetings.

[Prime Minister’s Media Division]

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Plans for 2026 on the journey towards a digital economy Under President’s review

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A discussion to review the progress of projects implemented under the Ministry of Digital Economy in 2025 and to examine new projects planned to be implemented under the 2026 budgetary allocations was held on Monday (19) morning  at the Presidential Secretariat under the patronage of the Minister of Digital Economy, President Anura Kumara Dissanayake.

Special attention was paid to the plans and progress of programmes to promote a cashless economy.

Accordingly, an extensive discussion was held on the progress of projects planned by the Government to promote a cashless economy in Sri Lanka, including the digitalisation of government institutions, promotion of QR transactions, establishment of a Cloud infrastructure centre, a national programme to provide high-speed broadband facilities, provision of single-window facilities, the digital identity card project and the project to digitalise payment of traffic spot fines.

Noting that much of the economic activity of rural communities remains in the informal sector, the President emphasised the need to formally document these activities and stressed that this is essential when formulating future economic and development plans.

The performance, progress and future plans of institutions under the Ministry of Digital Economy, including Sri Lanka CERT, the Data Protection Authority and the Telecommunications Regulatory Commission (TRC), were also reviewed.

The current status and new recruitments of the GovTech institution, established to implement the Government’s digitalisation programme, were also discussed.

Deputy Minister of Digital Economy, Eranga Weeraratne, Secretary to the President, Dr. Nandika Sanath Kumanayake, Senior Presidential Adviser on Digital Economy, Dr. Hans Wijayasuriya, Senior Additional Secretary to the President, Roshan Gamage, Secretary to the Ministry of Digital Economy, Varuna Sri Dhanapala, senior officials of the Ministry and heads of institutions under the Ministry also participated in the discussion.

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Power sector reforms: CEB trade unions threaten strike

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A simmering confrontation between the government and the powerful Ceylon Electricity Board (CEB) trade unions intensified yesterday, with the latter signalling continued industrial action, even as authorities moved decisively to prevent any disruption to electricity supply.

The dispute centres on the government’s determination to restructure and unbundle the CEB under amendments to the Electricity Act, a reform drive officials describe as unavoidable to curb losses, strengthen governance and stabilise the national power sector. This has also been a long-standing demand of international donors, particularly the International Monetary Fund and the World Bank.

Some 24 CEB unions, including powerful engineers’ and workers’ organisations, have rejected the move, warning that the proposed restructuring could weaken institutional coordination, undermine job security and eventually place additional pressure on consumers.

Union representatives said work-to-rule campaigns and other limited forms of industrial action would continue, despite electricity services being declared an essential service — a legal measure that effectively curtails full-scale strike action.

“These reforms are being imposed without proper consultation. Decisions taken in haste could have serious consequences for grid stability and public confidence,” a senior union official told The Island.

The government, however, has adopted a firm posture, cancelling all categories of leave for CEB staff and directing management to ensure uninterrupted operations across generation, transmission and distribution.

A senior official at the Power and Energy Ministry said the administration would not allow labour unrest to jeopardise electricity supply, stressing that energy security was central to economic recovery.

“Electricity is a critical public service. Any attempt to disrupt supply will be dealt with firmly,” the official said.

Engineers’ unions have separately cautioned that restructuring without a clearly articulated technical and regulatory framework could compromise long-term planning and system reliability, though they have stopped short of calling for an outright shutdown.

Despite ongoing discussions between union leaders, CEB management and government representatives, there is no indication of an early resolution, raising the prospect of a prolonged standoff at one of the country’s most strategically important state institutions.

The dispute unfolds amid Sri Lanka’s IMF-backed reform programme, under which state-owned enterprises — particularly in the energy sector — are under increasing pressure to reduce losses and ease the burden on public finances.

Analysts warn that sustained unrest at the CEB could complicate reform timelines and dent investor confidence, even as the government seeks to signal policy resolve.

A retired CEB top official said: “For now, while major strike action remains legally constrained, the confrontation has once again placed the power sector at the centre of national debate, with consumers and businesses watching closely for any fallout.”

By Ifham Nizam ✍️

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