Business

Shortage of medicines likely to exacerbate from Paracetamol to life-saving drugs: SLCPI

Published

4 years ago

2022/03/3

From left: Sri Lanka Chamber of the Pharmaceutical Industry Treasurer Dinesh Athapaththu, Vice President Azam Jaward, Senior Vice President M. Prathaban, President Sanjiva Wijesekera, Immediate Past President Kasturi Chellaraja Wilson, Council Members Adrian Basnayake and Jude Fernando

by Sanath Nanayakkare

The current shortage of Paracetamol and Panadol in the market could aggravate to a situation where life-saving drugs would not be available to patients in a few months, Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) warned yesterday.

“This could happen if the US dollar shortage is not properly addressed and a realistic pricing formula for imported medicines is not introduced forthwith by the authorities,” they said.

“At present, the shortage of medicines is about 5%. One might say it is small or unimportant as to be not worth considering. But in 4-6 weeks from now it could increase to about 25%,” they warned.

SLCPI made these comments at a press briefing held at Taj Samudra Colombo.

“We have a fear. We want to update the general public of Sri Lanka on the current situation with regard to medicine imports because what is on the horizons is not good. Delays at the National Medicines Regulatory Authority (NMRA), the unrealistic price mechanism and the dollar crisis are biting our industry. The dollar crisis is common to every industry, but we also have a serious problem as medicine importers. Until last month, we didn’t have a major crisis. But this month and in the last two weeks, the banks have been advised to prioritise allocation of dollars for fuel purchases and it appears that medicine imports have received de-prioritisation on the list of essential imports. If this trend continues, we will have a serious problem in even importing life-saving drugs. At the moment, it is under control. We have to inform the general public of the evolving situation,” Azam Jaward, Vice President, SLCPI said.

“The last price increase on drugs was allowed in August 2021 when the USD was trading at Rs. 194. Now the dollar has incresed to Rs. 203 which is the ‘published rate’ by the Central Bank of Sri Lanka, but unfortunately there is no mechanism to address the current disparity in the exchange rate. We need asustainable pricing mechanism which addresses the exchange rate, freight rate, current global prices, inflation, cost of fuel etc,” they said.

“Our industry is quite energy-driven. Some drugs need to be stored in temperatures between 2- 8 Celsius. Some need -20 Celsius. If we don’t have electricity, we face big issues. We have to run generators and multiple storage facilities. At present, we are managing it. But all of this depends on the availability of fuel. To run a generator for 7-8 hours a day, we need 2,000 litres of diesel per day,” they said.

“The NMRA charges dollars from us to register a product. They adjust it monthly based on the change of the exchange rate. The government has a fee- charging mechanism based on the US dollar. Then why don’t they do the same for drugs that are imported for sale? These are two conflicting policies,” they argued.

“We don’t need a price increase. Just amend the prices relative to the value of the dollar. For this we need an intervention by the Central Bank. If we can obtain a monthly allocation of USD 25-30 million per month, we believe that we can supply essential drugs to the general public without any disruption,” they said.

“We have had discussions with the authorities on these matters and we have submitted these facts for them to consider, but we have not yet achieved any results other than discussions.There is undue delay at the NMRA in granting the re-registration of products which have been available in the market for a considerable period, and new product registrations. With regulatory fees increasing by an average of 11-fold, the service of the regulator is below expectation,” they said.

Some excerpts of the SLCPI press statement are reproduced below.

“Over 85% of pharmaceutical products are imported, and these imports are paid for by US dollars. The current US dollar shortage in the country has increased the difficulty of importing essential medicines. In addition to this, companies have been unable to pay their dues. As a result, suppliers are no longer interested in supplying to Sri Lanka.”

“The situation is further worsened as banks find it difficult to honour the Letters of Credit (LCs) that are opened to import drugs. Banks delay opening the LCs until there are sufficient dollars. This has resulted in shipments being scheduled according to the availability of dollars and not according to the needs of the patients.”

acceptable pricing mechanism as well as immediately ironing out NMRA red tape for registrations are prerequisites for resolving this crisis.”

SLCPI serves as the representative of over 60 members who account for more than 80% of the private pharmaceutical industry, spanning manufacturers, importers, distributors and retailers. These stakeholders supply Sri Lankan patients with 1,200 molecules from 435 manufacturers from across the world.

SLCPI told The Island that banks ask them to purchase dollars from exporters to finance their medicine imports, but when they reach exporters to buy their dollars, they ask Rs. 245 per US dollar which is the price in the gray market. “So, how can we buy dollars from them and import and sell at controlled prices?” they said.

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Business

MOU between Ceylon and Gujarat’s Chambers of Commerce

Published

13 hours ago

2025/11/16

Thilina Walpola

The Ceylon Chamber of Commerce (CCC) and the Gujarat Chamber of Commerce & Industry (GCCI) signed a Memorandum of Understanding on November 13 in Ahmedabad, Gujarat, to strengthen bilateral trade, investment, and business cooperation between Sri Lanka and Gujarat, a news release from the Sri Lanka High Commission in Delhi said.

The MoU was signed by Chairperson of The Ceylon Chamber of Commerce, Krishan Balendra, and President of the Gujarat Chamber of Commerce & Industry, Sandeep R. Engineer.The signing took place during the visit to Gujara of Sri Lanka’s High Commissioner to India, Mahishini Colonne, marking her first official state-level engagement since assuming office.

The initiative and arrangements leading to the signing were facilitated by Sri Lanka’s Honorary Consul in Gujarat, Rakesh Shah, whose efforts played a key role in bringing the two chambers together.

Under the MoU, the Ceylon Chamber and the GCCI will collaborate to promote business opportunities, facilitate joint ventures and partnerships, organize B2B engagements, and enhance knowledge-sharing between the private sectors of both economies.

“It is hoped that the partnership would also serve to deepen maritime and logistics cooperation and build on the complementarities between Gujarat’s major ports and Sri Lanka’s role as a regional transshipment hub,” the release said.

Both Chambers expressed confidence that the MoU will open new avenues for trade, investment, and sustainable economic cooperation.

Business

SLIC Life partners BASL to offer exclusive retirement plans for legal fraternity

Published

13 hours ago

2025/11/16

Thilina Walpola

Sri Lanka Insurance Life has partnered with the Bar Association of Sri Lanka (BASL) to launch the “Sri Lanka Insurance Life Rakawarana Retirement Plan,” a tailored retirement solution for legal professionals. This exclusive plan, designed to enhance the financial security of BASL members, offers a guaranteed income after retirement, along with additional protection through Accidental Death Cover. Members can choose a retirement age between 45 and 70 years, with a guaranteed monthly income that increases by 5% annually. They can also receive up to five times their monthly pension as a health benefit each year, with no need for hospital bills. In the event of the policyholder’s death, the beneficiary will continue to receive the annuity and bonuses.

The plan offers flexible payment options (monthly, quarterly, half-yearly, or annually) and covers individuals aged 18 to 60, with policy terms ranging from 5 to 40 years. It also includes options for additional benefits like family protection, permanent disability cover, and critical illness coverage.

BASL President Rajeev Amarasuriya emphasized the importance of this collaboration in securing members’ financial futures, while Sri Lanka Insurance Life CEO Nalin Subasinghe highlighted the plan’s role in providing tailored financial solutions for the legal community.

Business

ComBank posts impactful 9-month results with strong loan book growth

Published

13 hours ago

2025/11/16

Thilina Walpola

Sharhan Muhseen, Chairman, and Sanath Manatunge, Managing Director/CEO of Commercial Bank.

The Commercial Bank of Ceylon group has reported gross income of Rs. 268.49 Bn. and net interest income of Rs. 103.48 Bn. at the end of the third quarter of 2025, with strong year-on-year growth of 34.60% in the loan book and curtailed interest expenses contributing to an impressive nine-month performance.

Comprising of Sri Lanka’s largest private sector bank, its subsidiaries and an associate, the Group reported in a filing with the Colombo Stock Exchange (CSE) that interest income grew by 6.96% to Rs. 221.53 Bn. for the nine months ending 30th September 2025, while interest expenses for the period remained static at Rs. 118.05 Bn. as a result of the lower cost of funds and continuing improvement in the CASA ratio.

Consequently, net interest income at Rs. 103.48 Bn. for the nine months reviewed, grew by 16.30% in contrast to the 11.08% growth in gross income. In the third quarter, gross income grew by 16.37% to Rs. 91.46 Bn., while interest income for the three months improved by 10.35% to Rs. 74.88 Bn., with the loan book growing by 10.14% at a monthly average of Rs. 58.51 Bn.

“Our commitment to lending remains undiminished, because we believe that our capacity to support national economic growth targets must be fully leveraged within prudential limits” said Sharhan Muhseen, Chairman of Commercial Bank. “The group’s performance reflects the impacts of this approach, and we expect similar strong growth in the final quarter of the year, in line with the trajectory of economic and business recovery.”

Sanath Manatunge, Managing Director/CEO of Commercial Bank said the Bank’s ability to sustain growth in the loan book backed by a focus on yield management and cost optimization helped the Bank to post these strong results for the nine months reviewed. He said that the Bank maintained a strong focus on the CASA ratio, which stood at 39.92% as at 30th September 2025, compared to 38.07% at end December 2024 and 39.60% a year ago, helping the Bank to keep the cost of funds under control.

Total operating income increased by 21.41% to Rs. 140.49 Bn. for the nine months while the Group’s impairment charges and other losses for the period declined by 28.21% to Rs. 14.37 Bn., primarily due to the previous year’s figure including an additional provisioning for the Sri Lanka International Sovereign Bonds (SLISBs) held by the Bank. For the third quarter of 2025, the Group reported a total operating income of Rs. 47.74 Bn., an improvement of 24.13%.

The Group posted a net operating income of Rs. 126.13 Bn. for the nine months, reflecting an impressive growth of 31.79%, while keeping operating expenses at Rs. 39.41 Bn., an increase of only 8.00%, resulting in operating profit before taxes on financial services growing by a noteworthy 46.46% to Rs. 86.71 Bn.

Taxes on financial services increased by 50.72% to Rs. 13.36 Bn., leading to Group profit before income tax of Rs. 73.35 Bn. for the nine months with a growth of 45.71%. Income tax increased by 34.71% to Rs. 25.33 Bn., resulting in a net profit of Rs. 48.02 Bn. for the Group during the nine months reviewed, representing an impressive bottom-line growth of 52.27%. The Group reported a net profit of Rs. 16.86 Bn., recording an improvement of 33.38% for the third quarter of the year.

Taken separately, Commercial Bank of Ceylon PLC reported a profit before tax of Rs. 70.57 Bn. and profit after tax of Rs. 46.02 Bn. for the nine months reviewed, recording growths of 44.83% and 51.51% respectively.

Total assets of the Group increased by Rs 357 Bn. or 12.40% during the nine months to reach Rs. 3.233 Tn., as at 30th September 2025. Asset growth over the preceding 12 months was Rs. 469 Bn. or 16.99%.

The Group’s continued impetus in lending saw gross loans and advances growing by Rs. 381 Bn. or 25.01% over the nine months to Rs. 1.907 Tn., at a monthly average of Rs. 42.39 Bn. Loan book growth over the preceding 12 months was Rs. 490 Bn., with YoY growth of 34.60%, averaging Rs. 40.85 Bn. per month.

Deposits grew by 12.26% to Rs. 2.589 Tn. in the nine months, an increase of Rs. 283 Bn. at an average monthly growth of Rs 31.40 Bn., and recorded YoY growth of 16.27%, with monthly average growth of Rs 30.18 Bn., over the preceding 12 months.

In other key performance indicators, the Bank’s Tier 1 and Total Capital Ratios stood at 13.391% and 17.282% respectively as at 30th September 2025, both comfortably above the statutory minimum ratios applicable for the Bank of 10% and 14% respectively.

In terms of profitability, the Bank’s net interest margin increased to 4.53% for the nine months compared to 4.27% reported at end 2024 and 4.38% a year ago. The Bank’s return on assets (before tax) improved to 3.19% compared to 2.47% a year ago, while the return on equity improved to 21.03% from 17.42% as at 30th September 2024.

The Bank’s cost to income ratio excluding taxes on financial services stood at 27.95%, as against the normalized ratio of 33.85% for 2024, while the figure inclusive of taxes on financial services was 37.69% for the period, in comparison with the normalized ratio of 41.89% for the preceding year, when the effect of the net loss on restructuring of Sri Lanka International Sovereign Bonds is discounted.

In terms of asset quality, the Bank’s impaired loans (Stage 3) ratio improved further to 1.79% compared to 4.08% a year ago, while its impairment (Stage 3) to Stage 3 loans ratio for the reviewed period improved to 71.43%, as against 64.61% as at 31st December 2024 and 53.54% as at 30th September 2024.