SL in contact with China, India for credit facilities to purchase drugs in Forex crisis

7 January 2022 09:31 am Views - 130

• LCs not yet opened for importing over 80 drugs
• Current stocks of drugs  sufficient for a few weeks 

By Kelum Bandara

Amidst the foreign exchange crisis, the government is exploring credit arrangements with China and India for the import of essential pharmaceuticals, a minister said. 

The State Pharmaceuticals Corporation (SPC)   is currently struggling, being unable to open Letters of Credit (LC) to import more than 80 essential drugs.

State Minister of Production,   Supply and Regulation of Pharmaceuticals   Prof. Channa Jayasumana told Daily Mirror that the current stocks of drugs would be sufficient for a few weeks, and a shortage might crop up in case LCs could not be opened.

The Minister said he held talks with the Central Bank in this regard.

 “The Central Bank authorities agreed to release foreign exchange once it settles US $ 500 million of International Sovereign Bonds maturing this month. In the meantime, we are negotiating with China for a credit arrangement to purchase pharmaceuticals,” he said.      

 During the last month’s visit of Finance Minister Basil Rajapaksa to India,  the supply of essential food items and drugs was one of the four areas agreed upon.

 

• The Central Bank authorities agreed to release foreign exchange once it settles US $ 500 million of International Sovereign Bonds maturing this month