Business

Beyond blame: The systemic crisis in Sri Lanka’s medicine regulation

Published

2 weeks ago

2026/01/5

AHP President Ravi Kumudesh

The recent suspension of ten Indian-manufactured injections by Sri Lanka’s medicines regulator has done more than ignite a fresh “substandard medicines” scare. It has laid bare a chronic, systemic failure in the nation’s pharmaceutical governance – a failure that transcends political parties and individual ministers.

According to Ravi Kumudesh, President of the Academy of Health Professionals (AHP), this episode is not an isolated scandal but the latest symptom of a regulatory regime that operates on personality and discretion rather than transparent, evidence-based science.

The public’s current anxiety, Kumudesh argues, stems from a dangerous confluence: an allegation of microbial contamination in an injectable, the blanket suspension of ten products from one manufacturer, and the opaque controversy surrounding an “Indian Pharmacopoeia” agreement. “When these three collide,” he states, “the outcome is predictable: not clarity, not confidence – but a national regulatory regime that the public is asked to ‘trust’ without being given the evidence required to trust.”

A problem rooted in system, not scapegoats

Kumudesh insists that framing this crisis around former Health Minister Keheliya Rambukwella or the current minister, Dr. Nalinda Jayatissa, misses the fundamental point. The core issue is a system that has remained stubbornly unchanged across administrations. “The public has watched governments change while the internal decision-making circle inside the regulatory system appears to remain remarkably stable,” he observes. This creates a perilous pattern where the same insiders sometimes act as public critics and at other times as ‘story managers’ within the system, leading to public perception of a credibility gap that no mere statement can bridge.

From hospital test to national edict: A question of protocol

The central controversy, Kumudesh explains, is not the precautionary suspension itself but the evidence pathway that led to it. “A hospital laboratory can detect signals. But national regulatory action requires national-level validation,” he emphasises. The critical, uncomfortable questions he raises are: If Sri Lanka’s own national medicine quality laboratory still lacks full public confidence, how can a hospital test justify a nationally consequential suspension? And if subsequent international or confirmatory tests contradict the initial finding, who repairs the shattered trust and clinical disruption?

He warns that Sri Lanka has seen this movie before – products removed amid public alarm only to be reintroduced later, creating clinical chaos and eroding faith. “Regulatory panic creates clinical chaos,” Kumudesh notes. The proper response to a contamination allegation, he outlines, is systematic: isolate temporarily, collect samples under strict chain-of-custody, and verify through recognised reference testing – not “suspend and shout.”

The unanswered questions: Procurement and agreements

Kumudesh points to glaring gaps in public accountability. One key question remains unanswered: were pre-shipment test reports for these injections reviewed? “If yes: where are the reports? If no: how did the system allow high-risk products in?” he asks, stressing that procurement is a patient-safety responsibility, not mere paperwork.

Furthermore, the shadow over the reported “Indian Pharmacopoeia” agreement exemplifies the systemic opacity. “If an agreement exists, the first duty is public disclosure,” he asserts. Without it, the public cannot assess whether Sri Lanka is strengthening its standards or inadvertently weakening its own scrutiny and liability pathways.

The path forward: Evidence over emotion

For Kumudesh, the solution lies in a radical shift from personality-based to evidence-based regulation. “Committees do not fix systems – systems fix systems,” he says, critiquing the cyclical political response of appointing committees after each crisis. His prescription is structural:

= Establish a stable, transparent regulatory protocol immune to political or personal influence.

= Build a credible, independent national medicine quality laboratory with recognised competency.

= Enforce a clear, legally sound evidence pathway for all regulatory decisions.

= Ensure routine publication of key regulatory outcomes and decisions.

“Without a credible national laboratory,” he warns, “Sri Lanka remains permanently dependent on foreign timelines and credibility, while its own decisions are perpetually questioned.”

The ultimate question Kumudesh leaves for policymakers and the public is stark: “Is the fear of substandard medicines being used to protect patients – or to hide the system’s inability to prove the truth quickly, transparently, and credibly?” Until the architecture of regulation is rebuilt on the bedrock of science and transparency, he concludes, this crisis will not be the last. It will simply be the latest in a long line of failures that place patients and professionals in the crossfire of a system they cannot trust.

By Sanath Nanayakkare ✍️

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Business

Rs. 1 million fine proposed on substandard plastic producers

Published

9 hours ago

2026/01/20

Sahan Weerasooriya

Dr. Ravindra Kariyawasam

The government’s proposal to raise fines on manufacturers of substandard plastic products to as much as Rs. 1 million is expected to trigger a major compliance shift within Sri Lanka’s plastics industry, correcting long-standing market distortions caused by weak enforcement.

Environment Deputy Minister Anton Jayakody said the move targets producers who continue to bypass approved standards, undercutting compliant manufacturers and exacerbating environmental damage.

Environment Ministry Advisor Dr. Ravindra Kariyawasam said the initiative represents a structural market correction rather than a purely environmental intervention.

“Non-compliant producers have enjoyed an artificial cost advantage for years, distorting pricing and discouraging legitimate investment,” Kariyawasam told The Island Financial Review. “Meaningful penalties are essential to restore fairness and industry discipline.”

He said the widespread circulation of low-grade plastic products has eroded consumer confidence and delayed the sector’s transition towards higher-value and sustainable manufacturing.

Industry analysts note that a Rs. 1 million fine would significantly alter risk calculations for marginal operators, forcing upgrades in machinery, testing and compliance or pushing weaker players out of the market.

Kariyawasam stressed that the policy is intended to support responsible businesses rather than suppress industry growth.

“Manufacturers investing in recycling, biodegradable alternatives and quality assurance should not be penalised by competing with environmentally damaging, low-cost products,” he said.

The Deputy Minister indicated that tighter enforcement will be paired with policy support for sustainable packaging and circular-economy initiatives, aligning the sector with emerging global trade and environmental standards.

From a business perspective, the proposed regulation is likely to impact pricing, supply chains and capital investment decisions, while improving the long-term credibility of Sri Lanka’s plastics industry in both domestic and export markets.

By Ifham Nizam

Business

First Capital to unveil Sri Lanka’s Economic Outlook and Investment Strategies for 2026

Published

10 hours ago

2026/01/20

Sahan Weerasooriya

First Capital Holdings PLC (the Group), a subsidiary of JXG (Janashakthi Group) and a pioneering force in Sri Lanka’s investment landscape, is set to host the 12th edition of its renowned ‘First Capital Investor Symposium’ on 22 January 2026 at Cinnamon Life Colombo, starting from 5.30 pm onwards.

The 12th Edition will focus on Sri Lanka’s Economic Outlook for 2026, offering attendees a comprehensive analysis of market forecasts, investment strategies and emerging opportunities in the capital markets. The symposium serves as a crucial gathering for investors seeking insights to navigate the evolving economic landscape and make sound, strategic decisions.

As a leading investment institution, First Capital remains committed to promoting informed decision-making through comprehensive research and market analysis. By hosting this annual symposium, the organisation reinforces its role as a trusted partner in Sri Lanka’s capital markets, providing a premier platform for investors, professionals, and industry leaders to exchange knowledge, explore opportunities and build meaningful connections.

A key highlight of this year’s agenda will be First Capital’s presentation on the Economic and Investment Outlook, outlining market conditions and investment strategies for the period ahead. The presentation will be delivered by Ranjan Ranatunga, Assistant Vice President – Research of First Capital Holdings PLC.

Business

Rivers, Rights, Resilience Forum 2026 begins in Colombo

Published

10 hours ago

2026/01/20

Sahan Weerasooriya

Oxfam in Asia commenced the Rivers, Rights, Resilience Forum (RRRF) 2026, a three-day regional forum bringing together water experts, policymakers, civil society, researchers, and community leaders from across South Asia and beyond to strengthen cooperation on shared river systems and climate resilience.

The Forum is part of the Transboundary Rivers of South Asia (TROSA) programme, supported by the Government of Sweden, which works on the Ganges–Brahmaputra–Meghna (GBM) river basins, while also encouraging cross-basin learning at the regional and global levels. This year’s theme is “Building Resilient Communities and Ecosystems.” The Forum is co-organised by Oxfam in Asia and Dev Pro, Sri Lanka.

The forum opened with a welcome address by John Samuel, Regional Director, Oxfam in Asia, who highlighted the deep connection between rivers, politics, climate change, and sustainability. He underlined how rivers shape both environmental and social outcomes across South Asia and called for stronger collaboration between governments and civil society.

“Today building resilience is important in terms of climate and politics, and when civic space is shrinking, we should all work in solidarity,” he said.

Speaking at the Forum, Chamindry Saparamadu, Executive Director of DevPro shared examples of how communities in Sri Lanka have taken actions to ensure equitable access to water resources through catchment protection initiatives, community-based water societies etc. She further highlighted that learning exchanges would be useful to further strengthen inter-provincial water governance in Sri Lanka.

The Chief Guest, Syeda Rizwana Hasan, Advisor, Ministry of Environment, Forest and Climate Change and Ministry of Water Resources, Bangladesh, in her video message, emphasised the need for regional cooperation among South Asian countries beyond the upstream–downstream identity.

“Climate change will make water scarce, so South Asian countries have to come together to work on the common interest of their communities. Rivers are not just ecology but economics as well for communities. Forums like this help us to share our experience and learn from each other,” she said.