News

Serious shortage of medicine due to foreign currency crisis

Published

4 years ago

2022/01/15

Pharmaceutical Industry contradicts Health Ministry

In spite of repeated government denials, severe restrictions have hampered the entire range of imports, including medicine. A few days after Health Ministry denied unavailability of medicines in the market, Sri Lanka Chamber of the Pharmaceutical Industry said that there was a shortage due to the deteriorating foreign currency crisis.

In a statement issued on Thursday (13), the outfit while declaring that it imported approximately 80 percent of medicine into the country said that the public raised two issues. They are; ‘will there be a scarcity of medicines in the near future in the country and if so, should they be stocking up their regular medications? and will the price of medicines go up in conjunction with all the other products in the market?’

The grouping warned the industry faced collapse as it couldn’t go on due to the continuing depreciation of Sri Lanka Rupee against the USD. It reminded the government that it was the only importer subjected to price control.

The following is the text of the statement issued by the apex body: “At least some sections of the public must be aware that there are shortages of some medicines even at present. This is due to many reasons but the foremost of these is the foreign currency crisis in the country which makes it difficult for banks to facilitate the payments through Letters of credit (LC’s). At present, banks, both state and private sector, allows the Pharma Importers to open LC’s only when they have sufficient dollars to safely guarantee payment for the imports. Although medicines are given certain priority, there are other items such as essential food items, Petroleum products, fertilizer etc., that have to be given priority as well by the Government. The result is that importing of medicines is now done on the availability of foreign currency and not on the needs of the country or its patients. In this situation, it is inevitable that there will be shortages of more and more medicines as the foreign exchange crisis deepens.

“As for stocking medicines in excess of usual treatment regime by patients, it is not advisable to do so for long periods since these products have to be stored under strict conditions specified by the manufacturers. It is doubtful whether such conditions can be maintained in an average household. In addition, bulk or panic buying by the affluent may deprive the less able segment of the population access to medicines they require for a healthy life.

“We as an industry will do our utmost to keep the supplies of medicines available uninterrupted, since we fully realize the implications of failing to do so. In this regard, we earnestly hope that the authorities concerned will give us priority in establishing LC’s on time.

“At the moment, medicines are the only commodity in the market that is under price control in Sri Lanka. This is making it nearly impossible for the companies to keep selling the medicines at the same price when the US Dollar continues to appreciate over time. On top of this, the global supply chain disruptions, increase in raw material costs and freight make it impossible to supply quality medicine as anyone would understand.

“It will be also catastrophic in the event if the dollar is allowed to float, which will mean that all medicines will have to be sold at a loss and as such, the entire industry will collapse in the face of such a threat where the importation would obviously stop as the cost of importation will be higher than the approved prices.

“There is no solution to this dilemma than removing the price control of medicines and implement a fair and equitable pricing mechanism which will link the price of medicines to the dollar, inflation and direct costs such as raw material, fuel and freight charges, which will make the importing and marketing of medicines viable. As difficult as it may sound, the authorities will have to choose between having medicines at a cost and not having medicines at all.

“We as an ethically responsible industry, have already sought the intervention of the courts in order to bring about a transparent pricing mechanism for Pharmaceuticals & Medical Devices that is fair to all. Such a mechanism may be the only salvation for the industry and the patients of the country and it is in the best interest of all concerned if the process is expedited by the authorities concerned by the government.

We would like to give a solemn undertaking to the public that we will do our utmost to see that the drug pricing is fair and equitable. The members of the SLCPI have an exceptional record of maintaining an uninterrupted supply of efficacious, safe & quality medicines at globally competitive prices over many decades while supporting the continuous medical education of the country.”

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Latest News

Sun directly overhead Dehiwala, Maharagama, Pannipitiya, Padukka, Eheliyagoda, Maskeliya, Siyambalanduwa and Pottuvil at about 12:13 noon. today (07th)

Published

40 mins ago

2026/04/7

Priyan

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year.

The nearest areas of Sri Lanka over which the sun is overhead today (07th) are Dehiwala, Maharagama, Pannipitiya, Padukka, Eheliyagoda, Maskeliya, Siyambalanduwa and Pottuvil at about 12:13 noon.

Latest News

Heat Index at Caution Level in the Northern, North-central, North-western and Eastern provinces and Monaragala and Hambantota districts.

Published

3 hours ago

2026/04/7

Priyan

Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre Issued at 3.30 p.m. on 06 April 2026, valid for 07 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western and Eastern provinces and Monaragala and Hambantota districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

News

SJB: Litro, Laugfs making a killing by selling old stocks at inflated prices

Published

4 hours ago

2026/04/7

Sahan Weerasooriya

Ananda Palitha

… as Lakvijaya falters, power plants need over 2 mn litres of fuel daily

By Shamindra Ferdinando

The SJB yesterday (06) said that the NPP government owed an explanation as to why Litro Gas Lanka Limited and Laugfs Gas PLC were allowed to increase the prices of old stocks of domestic gas. Litro and Laugfs have increased the prices of 12.5 kg cylinder by Rs. 775 to Rs. 4,765 and by Rs. 1,070, to Rs. 5,700, respectively.

Convener of the Samagi United Trade Union Force (SUTUF) and the Samagi Joint Trade Union Alliance Ananda Palitha said they were aware of the state-owned gas supplier Litro and the private sector enterprise making a killing at the expense of consumers.

Acknowledging that gas and fuel prices had to be increased in view of the disruptions to the regular supply route through Hormuz Strait, the former petroleum sector worker emphasised it wouldn’t be fair, under any circumstances, to apply a new pricing formula to old stocks.

Taking advantage of the new West Asia war, the government (CPC) and three foreign private suppliers, namely Lanka IOC, Sinopec and R.M. Parks, increased prices of old fuel stocks, Palitha alleged, adding that his accusations, previously reported in the front-page of The Island, haven’t been disputed.

Responding to our queries, Palitha pointed out that Sri Lanka experienced gas supply disruption even just before the eruption of the Iran war.

Warning that further electricity tariff increases were around the corner due to failure on the part of the country’s only coal-fired power plant Lakvijaya to produce the required electricity, Palitha blamed the developing crisis on the use of low-quality coal for power generation.

Referring to recent media reports of fuel powered power plants needing 800,000 litres, daily, to meet the shortfall due to the crisis at Lakvijaya, Palitha said that the actual requirement was much more. Kelanitissa Combined cycle power plant alone required 1.3 mn litres of diesel daily, Palitha said, alleging the country was paying a very heavy price for corruption and mismanagement by the current dispensation.

According to Palitha Kerawalapitiya (Yugadanavi) Combined Cycle Power Plant required 750,000 litres of black oil/furnace oil. Together, those two power plants, namely Kelanitissa and Yugadanavi, required over 2 mn litres per day, the trade unionist activist said, warning the government of frightening economic consequences.

Having explained the requirements of other power stations in operation, Palitha said that the situation was so bad that the CEB, about three days back, began buying fuel worth Rs 1.7 bn from the Ceylon Petroleum Corporation on credit. Responding to another query, Palitha said that though the Iran war was having a major impact here, the NPP should accept responsibility for the corrupt coal deal and horrendous mismanagement of the power sector.

The government sought to downplay the crisis, claiming that Sri Lanka received Indian and Chinese support to meet its energy requirements, Palitha said. However, foreign powers were exploiting the situation here to advance their agendas, Palitha added, urging the government to come out clean.

India was increasing its hold on Sri Lanka, the trade union activist said, noting that Sri Lanka had recently declared its intention to develop a section of the Trincomalee oil tank farm together with India. According to Palitha, Indian Prime Minister Narendra Modi himself had asked President Anura Kumara Dissanayake to fast-track the project.