‘Private sector, too, is importing under Indian credit line’

By Shamindra Ferdinando

SLPP MP Prof. Channa Jayasumana yesterday (03) said that cholesterol lowering drug Atorvastatin had been ordered by private supplier Sunshine Healthcare Lanka Ltd., under the Indian credit line made available to procure urgent requirements, including medicine.MP Jayasumana said that of USD 200 mn allocated for the import of medicine, a part had been allocated to the private sector as they, too, lacked sufficient USD to place orders.

Prof. Jayasumana said so responding to yesterday’s lead story headlined ‘Procurement of cholesterol lowering drug: SL to lose heavily due to questionable deal with Indian company.’

Jayasumana said that he held health portfolio at the time the Indian credit line became operational. “Therefore, I had to set the record straight. That particular procurement had been made by the private sector not the health ministry as erroneously alleged by a trade unionist,” he said.MP Jayasumana was responding to a statement issued by Ravi Kumudesh, President of the College of Medical Laboratory Science, regarding the procurement of Atorvastatin by the Health Ministry.Alleging that the procurement had been finalized above the previously paid price therefore the government stood to lose USD 240,000 a month, the trade unionist urged the government to stop the embezzlement of funds.

Lawmaker Jayasumana made available a copy of the relevant invoice. Responding to queries, MP Jayasumana said that he asked Kumudesh about the issue at hand. The former minister maintained that it had been a slip-up on the part of the trade union. Having received a copy of the invoice pertaining to Atorvastatin purchase, the trade union had issued the statement on the presumption the order was placed by the Health Ministry.India on March 17, 2022 announced a USD 1 billion line of credit as part of its financial assistance to help Sri Lanka deal with its economic crisis.

Lawmaker Jayasumana said that following consultations among relevant parties, the finance and trade ministries decided to allocate USD 200 mn out of USD 1 bn for the procurement of medicine. Of the allocation for medicine, the State Pharmaceutical Corporation (SPC) had been given USD 126 mn and the remaining amount divided among other importers. They are State Pharmaceutical and Manufacturing Corporation (SPMC) USD 4 mn, local manufacturers USD 25 mn and private sector suppliers USD 45 mn.Prof. Jayasumana said that SPMC required funds for the procurement required raw material and other services for the manufacture of drugs. In fact, the SPC never bought Atorvastatin from any overseas supplier, Prof. Jayasumana said, adding that in addition to the SPMC, there were at least three other local producers, including Hemas Pharmaceuticals.

Prof. Jayasumana lost health portfolio in the wake of the appointment of a new cabinet following the resignation of Prime Minister Mahinda Rajapaksa on May 09. Keheliya Rambukwella, who served as the health minister at the time President Gotabaya Rajapaksa reshuffled the cabinet, regained the same portfolio in the new cabinet of ministers.MP Jayasumana said that the procurement process had been delayed by some of the Indian suppliers requesting that the payments be made through their regular banks instead of the State Bank of India chosen for the transfers of money. Following intervention made by Prof. G.L. Peiris, in his capacity as the Foreign Affairs Minister, the health ministry was able to sort out the matter.

Referring to the recent disclosure of shortcomings in procurement procedures following examination of the SPC by the Committee on Public Enterprises (COPE), Prof. Jayasumana emphasized that the country lacked wherewithal to procure essential supplies.Medicine and medical equipment had been among the items that were in short supply and recent media reports revealed how the global community backed Sri Lanka’s efforts to maintain health services.In addition to the Indian credit line and funds re-allocated by the World Bank and the Asian Development Bank, several countries provided medicines and medical equipment as well as much needed funds, the former health minister said.