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Sri Lanka’s economic turmoil and value of Senanka Bibile drug policy

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By Dr. Ajith Kumara
Consultant Physician
President, All Ceylon Medical Officers Association

Prof. Senaka Bibile is the greatest medical benefactor of humanity that Sri Lanka has hitherto produced. As a student, he was an all-rounder; he excelled in in academic and extracurricular activities including sports and art. He completed his First, Second and Final M.B. Examinations, all with First Class Honours and won the coveted Djunjishaw Dadabhoy Gold Medal in Medicine and the Rockwood Gold Medal in Surgery at the finals.

Both his talent and Marxist ideology motivated him to dedicate the rest of his life to a mission to develop the medical education and also introduce a national drug policy which was overwhelmingly grabbed by many nations and organisations across the world.

Background for National Drug Policy

The capitalist system is full of flaws due to the nature of commodity production. After the world war II, there was a transient progression which was soon followed by economic recessions across the world interpreted as great depression, OPEC oil crisis, Secondary banking crisis of 1973–1975 in the UK, Latin American debt crisis and so on.

Sri Lanka also witnessed a steady deterioration of balance payment from 1960s and economic growth rate progressively declined from 4.6%which was during 1950 and 1960 to 2.6% by 1974. From 1965 to 1970, the foreign exchange allocation for drugs was cut from a total of Rs. 33 million (Rs. 20 million for private and Rs. 13 million for Civil Medical Stores’ imports) to Rs. 24 million (Rp. 14 million and Rs. 10 million, respectively). Those drastic cut downs of health expenses irrespective of growth of population and steadily rise of drug prices resulted in significant drop in per capita pharmaceutical supply compromising health care across the country. Therefore, the prime minister requested Prof Senaka Bibile to cut down expenses without compromising patient care.

By 1970, Sri Lanka had no national health or drug policy like most other countries and drugs were imported for the government sector and for the private sector separately by the civil medical stores and 134 local agents of foreign suppliers respectively. Both the government and the private sector were heavily influenced by propaganda of the transnational companies (TNC).

Major recommendations in National Drug Policy

List of essential drugs

Prof. Senaka Bibile pioneered the publication of the Ceylon Hospitals Formulary from 1957 to identify essential drugs for the hospitals and introduced the concept of List of Essential Medicines in 1958 in Sri Lanka; it was new to the world and later taken up by WHO and other countries to ensure continuous supply of essential drugs at the lower possible cost.

When preparing the drug list, many imitative drugs, which made no contribution to the therapeutic effect of a particular drug that were chosen on the basis of economy, large number of fixed combination drugs and drugs without clear therapeutic value or with high toxicity were left out. Drugs that have got a very slight structural difference to already known drugs, but with the same therapeutic effect (me-too drugs) were also deleted. So, he managed to minimise the drug list from about 4000 preparations to a reasonable number (about 600) without detrimental effect on patient care.

Centralisation of the purchase

The next major recommendation was the centralisation of purchase of both finished drugs according to the rationalised list and pharmaceutical chemicals for local manufacturers. State Pharmaceutical Cooperation (SPC) initiated this task of wholesale import of all drugs and pharmaceutical raw materials and, the purchase of locally processed pharmaceuticals. By the end of 1973, it could take over all imports.

Shopping around the world and accepting low price-bid as bulks rather than finished products helped save a lot of money. To maintain the quality of drugs, the pharmaceutical company should produce certificate of quality plus an independent certificate of quality from a reliable laboratory, an agent or an official body before accepting their bid.

He suggested the following formula to understand the price of a drug to scientifically reduce its price. (See table)

CIF value ( Cost of goods, Insurance and freight) 100Handling charges 05Import duty 25Wholesalers profit 35Retailers profit 35Price to the consumer 200

Prof. Bibile pointed out that the wholesale import of raw materials and bulk pharmaceuticals at the most favourable price (at a lowest possible CIF value) will enable drug to be obtained and sold at the lowest price rather than fighting to limit wholesalers and retailers profit.

Ignore the patent law

The other recommendation was to abolish the patent law. Until that time, Sri Lanka had not been able to purchase patent products from any other manufacturer even though the drug was manufactured in a different process. Therefore, Sri Lanka could not buy cheaper products manufactured by a process different to those used by the original patent holders. Hence, it was suggested to amend the patent law so that only process patents would apply but not the product patents similar to the manner of operating the patent law in many countries such as Japan, Sweden, Denmark, Switzerland and most of the socialist countries.

Drug distribution and advertising

Repacking of bulk imported drugs and distribution of the drugs to the government sector and also to the private sector should be done by the state trading cooperation.

Drug advertising and education of doctors about drugs via brochures from pharmaceutical firms and their representatives should cease and local manufactures too should let the cooperation to advertise on their drugs.

Nomenclature

The report strongly recommended using generic names of medications instead of their trade names in prescriptions.

State Pharmaceutical Industry

Manufacturing pharmaceuticals in the country should also be started under the guidelines set by the government according to the essential drug list using the materials imported by the state, leaving the promotion and distribution to the state. If any manufacturer proved recalcitrant, the government has the authority to nationalise them. With this recommendation, by 1973, Sri Lanka m,anufacuired 47 essential drugs and, by 1974, and it increased to 71 drugs while saving more than 450,000 USD for the country.

Quality control of drugs

It was suggested to establish a quality control laboratory with a trained staff. Initially, he suggested getting consultants for the laboratory and to train staff through the WHO until local counterparts can take over the function.

Pharmacies, Pharmacists and their training

This was one of the most neglected aspect in health system by then. He rec eived assistance from Dr. J. Chilton of the University of Glasgow and a WHO consultant in Pharmacoloy, in training of pharmacists and to recommend the setting up of model pharmacies in the Colombo hospitals. The pharmacology course was later upgraded to a two year university diploma course according to his proposals.

In addition to these, the report has addressed about the research, monitoring and continuous development of human resources and infrastructure too.

Therefore, when analysing the Bibile Policy, it is clear that it is not merely an attempt to control the prices of drugs but, a very comprehensive national strategy for pharmaceutical sector in the health system.

National Drug policy to the world

Prof. Bibile was given the opportunity to present his novel model of pharmaceutical policy at the United Nations Conference on Trade and Development in 1976 and it was soon supported by World Health Organization (WHO) and other United Nations agencies as it would give enormous benefit to the third world countries.

By the year 2,000, over 100 countries had national pharmaceutical policies and 88 countries had introduced the essential drug concept to medical and pharmacy curricula. In 1971, both Chile and Sri Lanka started centralised bulk procurement but, Chile failed due to the power of pharmaceutical companies and the lack of strong political will at their end.

In the early 1980s, Bangladesh ranked as the world’s second poorest country with the average per capita income of US$130. However, they succeeded in national pharmacological policy due to strong political commitment giving a good example to the world that if the vital ingredient of political will and commitment are there, the real progress is possible irrespective of the power of the pharmaceutical giants.

Sri Lankans failure

Signs of failure appeared from the outset of the policy implementation in Sri Lanka. In the report in 1976 written by Prof. Bibile and Dr. Sanjaya Lal, it is clearly mentioned that the government was neither monolithic nor fully consistent with its strategy and, after 1975; government changed its economic strategy and hindered the policy implementation.

By now, Sri Lanka has faced a severe economic crisis with a shortage of foreign currency and an inability to provide basic requirements such as food, education and health of the citizens. Hospitals have run out of drugs including life-saving medications and surgical items.

Nevertheless, there are numerous combinations of various types of vitamins; plenty of medications which have no proven benefits, me-too drug and many counterfeit medications in the market wasting our foreign currency! About 30% of health expenditure is spent for pharmaceuticals.

If Sri Lanka had implemented Bibile drug policy and imported drugs according to an essential medicine list, heath budget could have efficiently be utilised to buy them while avoiding wasting of foreign currency for unnecessary medications. That would be an expeditious solution to the current crisis in essential medicines. As planned earlier, if the pharmaceutical manufacturing industry is commenced, it will be an excellent way of earning the much needed foreign currency in the long term. Therefore, the implementation of Bibile drug policy is much more important today than ever as a comprehensive approach to the crisis in health system to ensure the availability of essential medications.



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Opinion

V. Shanmuganyagam (1940-2026): First Clas Engineer, First Class Teacher

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Quiet flows another don. The aging fraternity of Peradeniya Engineering alumni has lost another one of its beloved teachers. V. Shanmuganayagam, an exceptionally affable and popular lecturer for nearly two decades at the Peradeniya Engineering Faculty, passed away on 15 January 2026, in Markham, Toronto, Canada. Shan, as he was universally known, graduated with First Class Honours in Civil Engineering, in 1962, when the Faculty was located in Colombo. He taught at Peradeniya from 1967 to 1984, and later at the Nanyang Technological University in Singapore, before retiring to live in Canada.

V. Shanmuganayagam

In October last year, one of our colleagues, Engineer P. Balasundram, organized a lunch in Toronto to felicitate Shan. It was very well attended and Shan was in good spirits. At 85 he was looking as young as any of us, except for using a wheelchair to facilitate his movement. The gathering was remarkable for the outpouring of warmth and gratitude by nearly 40 or 50 Engineers, who had graduated in the early 1970s and now in their own seventies. One by one every one who was there spoke and thanked Shan for making a difference in their lives as a teacher and a mentor, not only in their professional lives but by extension in their personal lives as well.

As we were leaving the luncheon gathering there were suggestions to have more such events and to have Shan with us for more reminiscing. That was not to be. Within three months, a sudden turn for the worse in his condition proved to be irreversible. He passed away peacefully, far away across the world from the little corner of little Sri Lanka where he was born and raised, and raised in a manner to make a mark in his life and to make a difference in the lives of others who were his family, friends and several hundreds of engineering professionals whom he taught.

V. Shanmuganayagam was born on May 30, 1940, in Point Pedro, to Culanthavel and Sellam Venayagampillai. His family touchingly noted in the obituary that he was raised in humble beginnings, but more consequentially his values were cast in the finest of moulds. He studied at Hartley College, Point Pedro, and was one of the four outstanding Hartleyites to study engineering, get their first class and join the academia. Shan was preceded by Prof. A. Thurairajah, easily Sri Lanka’s most gifted academic engineering mind, and was followed by David Guanaratnam and A.S. Rajendra. All of them did Civil Engineering, and years later Hartley would send a new pair of outstanding students, M. Sritharan and K. Ramathas who would go on to become highly accomplished Electrical Engineers.

Shan graduated in 1962 with First Class Honours and may have been one of a very few if not the only first class that year. Shan worked for a short while at the Ceylon Electricity Board before proceeding to Cambridge for postgraduate studies specializing in Structures. His dissertation on the Ultimate Strength of Encased Beams is listed in the publications of the Cambridge Structures Group. He returned to his job at CEB and then joined the Faculty in 1967. At that time, Shan may have been one of the more senior lecturers in Structures after Milton Amaratunga who too passed away late last year in Southampton, England.

When we were students in the early 1970s, there was an academic debate at the Faculty as to whether a university or specific faculties should give greater priority to teaching or research. Shan was on the side of teaching and he was quite open about it in his classes. He would supplement his lectures with cyclostyled sheets of notes and the students naturally loved it. It was also a time when Shan and many of his colleagues were young bachelors at Peradeniya, and their lives as academic bachelors have been delightfully recounted in a number of online circulations.

The cross-sectional camaraderie at the Faculty in those days is well captured in one of the photographs taken at Shan’s wedding at Point Pedro, in 1974, which too has been doing the rounds and which I have inserted above. Flanking Shan and his bride Kalamathy, from Left to Right are, M. Dhanendran, Nandana Rambukwella, K. Jeyapalan, Wickrama Bahu Karunaratne, A.S. Rajendra, Lal Tennekoon, Tusit Weerasooria, and R. Srikantha. Sadly, Rambukwella, Karunaratne (Bahu), Tennekoon and now Shan himself, are no longer with us.

Like other faculty members, Shan kept contact with his former students turned practising engineers and they would reach out to him to solicit his expertise in their projects. In the early 1980s, when I was working as Resident Project Manager with my Peradeniya contemporaries, JM Samoon and K. Balasundram, at the Hanthana Housing Scheme undertaken by the National Development Housing Authority (NHDA), Shan was one of the project consultants helping us with concrete technology involving mix design and in situ strength testing using the testing facilities at the Faculty.

The Hanthana Team Looking back, the Hanthana housing scheme construction was the engineering externalization of the architectural imaginings of Tanya Iousova and Suren Wickremesinghe, for building houses on hill slopes without flattening the hills. The project involved the construction of hundreds of housing units with supporting infrastructure comprising roads and drainage, water supply and sanitary, and electricity distribution using underground cables. Tanya & Suren Wickremasinghe were the Architects with an Italian construction company as contractors.

To their credit, Tanya and Suren assembled quite a team of Consulting Engineers that was a cross-section of E’Fac alumni, viz., Siripala Kodikkara and Siripala Jayasinghe (Contract Administration); Prof. Thurairajah (Foundations & Soil Mechanics); S.A. Karunaratne (Structures); V. Shanmuganyagam (Concrete Technology); Neville Kottagama and DLO Mendis (Roads & Drainage); K. Suntharalingam (Water Supply & Sanitary); and Chris Ratnayake (Electrical).

As esoteric gossip goes, DLO Mendis had an informal periodization of engineering graduates, identifying them as either Before-Thurai or After-Thurai, centered on 1957 – the year Prof. Thurairajah graduated with supreme distinction and went on to do groundbreaking theoretical research in Soil Mechanics at Cambridge. Of the Hanthana consultant team, Neville Kottagama and DLO Mendis were before Thurai by six years, Shan was five years after, and all the others came later. Sadly though, only Tanya and Chris are with us today from the 1980s group named above.

After Hanthana came 1983 when all hell broke loose and hundreds of professionals and their families were forced to leave Sri Lanka. Shan left Peradeniya and joined Nanyang Technological University in Singapore, encouraged by his Cambridge contemporaries from Singapore. He taught at Nanyang for twelve years (1984-1996) before moving to Canada with his wife and three sons who were by then ready for university education.

All three children have done exceptionally well in their studies and professional careers. The oldest, Dhanansayan, is a Medical Doctor and a Professor at the University of Wisconsin School of Medicine and Public Health, in Madison, United States. That was where India’s Jayaprakash Narayan and Sri Lanka’s Philip Gunawardena had their university education a hundred years ago.

The younger two sons took to Engineering. The second son, Kalaichelvan, is Program Manager at Creation Technologies, an award-winning global electronics manufacturing service provider. And the youngest, Dhaksayan, is the Chief Information Officer (CIO) at the Toronto Transit Commission (TTC), which is North America’s third-largest urban transit system.

All three have done their parents proud and Shan would have been gratified to see them achieve exemplary success in their chosen fields. A first class Engineer and a first class teacher, Shan was also a great father and a loving grandfather. As we remember Professor Shanmuganyagam, we extend our thoughts and sympathies to his beloved wife Kalamathy, his sons and their young families

by Rajan Philips

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Opinion

Cannavarella: Estate once owned by OEG with a heritage since 1880

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Established in 1880, Cannavarella Estate stands among the most historically significant plantations in Sri Lanka, carrying a legacy that intertwines agricultural heritage, colonial transitions and modern development. Its story begins with the cultivation of cinchona, a medicinal bark used to produce quinine, which is a vital treatment for malaria at the time, introduced when coffee estates across the island were failing.

Under the ownership of Messrs Macfarlane, Cannavarella rapidly gained a reputation for producing cinchona at ideal elevations between 4,000 and 5,000 feet above sea level. At that time, the estate spanned around 750 acres and played a pivotal role in the island’s shift from coffee to alternative plantation crops during the late 19th century.

A transformative chapter began when Christopher B. Smith purchased the property and unified several surrounding estates- Moussagolla, Cannavarella, East Gowerakelle, and Naminacooly- into what became known as the Cannavarella Group. This amalgamation created a vast holding of approximately 1,800 acres. By 1915, nearly 1,512 acres of this extent were cultivated in tea, marking the estate’s full transition from cinchona to the crop that would define its identity for generations.

The Group was managed by the Eastern Produce and Estates Company from 1915 until 1964, after which stewardship passed successively to Walker & Sons Company Ltd, and then to George Steuart Company Ltd by 1969.

A defining moment in the estate’s history arrived in 1971 when Sir Oliver Goonetilleke, former Governor General of Ceylon, acquired the estate. Under his ownership, it came under the London-based company Ceyover Ltd., a name derived from “Cey” for Ceylon and “Over” for Oliver.

The estate remained under private ownership until the nationalization wave of 1975, during which Cannavarella was brought under the Janatha Estates Development Board (JEDB). For nearly two decades it was managed under government purview until the plantation sector was re-privatised in 1992.

Sir Oliver Goonetilleke

Thereafter, Cannavarella Estate moved under the management of Namunukula Plantations Limited, first through BC Plantation Services, then under John Keells Holdings’ Keells Plantation Management Services and eventually under the ownership of Richard Pieris & Company PLC, where it continues today as part of the Arpico Plantations portfolio.

Blending heritage, landscape and community

Situated along the northeastern slopes of the scenic Kabralla-Moussagolla range and bordering the Namunukula mountain range, Cannavarella Estate spans a total extent of 800 hectares. Its six divisions rise across elevations from 910 to 1,320 metres above sea level, creating a landscape ideal for cultivating premium high-grown tea. Of the total land area, 351 hectares are dedicated to mature tea, while 54 hectares consist of VP tea, representing 16 % of the estate.

Among its most remarkable features are fields containing seedling tea bushes more than a century old, living symbols of Sri Lanka’s plantation legacy that continue to thrive across the slopes. The estate is also home to the origin of the Menik River, which begins its journey in the Moussagolla Division, adding an ecological richness to Cannavarella’s natural environment.

Cannavarella’s history of leadership reflects broader transformations within the plantation industry. The last English superintendent, Mr. Charles Edwards, oversaw the estate during the final phase of British management. In 1972, he was succeeded by Franklin Jacob, who became the first Sri Lankan superintendent of the Cannavarella Group, marking a shift toward local leadership and expertise in plantation management.

Development within Cannavarella Estate has never been confined to agriculture alone. Over the past decade, the estate has strengthened its emphasis on community care, diversification and improving living conditions for its workers. In 2022, coffee planting was initiated in Fields 7 and 8 of the NKU Division, covering 2.5 hectares as part of a broader effort to introduce alternative revenue streams while complementing tea cultivation.

The estate’s commitment to early childhood development is reflected in the initiation of a morning meal programme across all Child Development Centres from 2025, ensuring that children receive nutritious meals each day. A newly constructed Child Development Centre in the EGK Division, completed in 2020, now offers modern facilities including a play area, study room and kitchen, symbolizing the estate’s dedication to nurturing the next generation. In 2015, a housing scheme consisting of 23 new homes was completed and handed over to workers in the CVE Division, significantly improving quality of life and providing families with safer, more stable living environments.

A future built on stability and renewal

Cannavarella Estate is preparing to undertake one of its most important social development initiatives. A major housing programme has been proposed to relocate 69 families currently residing in landslide-prone areas of the Moussagolla Division. Supported by the Indian Housing Programme, this effort aims to provide secure, sustainable housing in safer terrain, ensuring long-term stability for vulnerable families and reducing disaster risk in the region.

Across its history, Cannavarella Estate has remained a landscape shaped both by the land and the people who call it home. Cannavarella continues to honour its roots while building a modern legacy that uplifts both the estate and its people. (Planters Association news release)

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Opinion

From the Lecture Hall to the Global Market: How Sri Lankan students are mastering the “Gig Economy”

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Image : Courtesy South China Morning Post

Have you ever wondered how a university student, between heavy textbooks and late-night study sessions, manages to earn a professional income in US dollars? It sounds like a dream, but for thousands of Sri Lankans, it’s becoming a daily reality through online freelancing.

A recent study published in the Ianna Journal of Interdisciplinary Studies has pulled back the curtain on this digital revolution. By interviewing 21 successful student freelancers across Sri Lanka, researchers have mapped out exactly what it takes to turn a laptop and an internet connection into a thriving career.

The Rise of the “Earn-as-you-learn” Era

In Sri Lanka, the number of online freelancers has exploded from about 20,000 in 2016 to over 150,000 today. While our traditional education system often focuses on preparing students for 9-to-5 office jobs , these students are diving into the “Gig Economy” a digital marketplace where they sell specific skills, like graphic design or programming, to clients all over the world.

The Secret Sauce for Success

So, what makes some students succeed while others struggle? The research found that it isn’t just about being good at coding or design. Success comes down to six “Core Pillars”:

· A Growth Mindset: The digital world moves fast. Successful students don’t just learn one skill; they are constantly updating themselves to ensure they don’t become “outdated”

· The Balancing Act:

How do they handle exams and clients? They don’t use a magic wand; they use strict time management. Many work late into the night (from 6 p.m. to midnight) to accommodate international time zones.

· The Power of “Hello”:

Since most clients are in the USA or UK, strong English and clear communication are vital. It’s about more than just talking; it’s about negotiating prices and building trust.

· Proactive Problem Solving:

Successful freelancers don’t wait for things to go wrong. They update their clients regularly and fix issues before they become headaches.

Why This Matters for Sri Lanka

Right now, our universities don’t always teach “how to be a freelancer”. This study suggests that if we integrate freelancing modules and mentorship into our degree programs, we could significantly reduce graduate unemployment. It’s a way for students to gain financial independence and bring much-needed foreign currency into our economy while still in school.

You Can Do It Too

If you’re a student (or the parent of one), the message is clear: the global market is open for business. You don’t need to wait for graduation to start your career. With a bit of flexibility, a willingness to keep learning, and a proactive attitude, you can transition from a learner to an earner.

The Research Team Behind the Study

This groundbreaking research was conducted by a dedicated team from the Department of Business Management at the SLIIT Business School (Sri Lanka Institute of Information Technology). The authors of the study include:

· Lihini Niranjana Dasanayaka

· Thuvindu Bimsara Madanayake

· Kalana Gimantha Jayasekara

· Thilina Dinidu Illepperuma

· Ruwanthika Chandrasiri

· Gayan Bandara

by Ruwanthika Chandrasiri

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