The special Pricing Committee chaired by Dr. Palitha Abeykoon, met this afternoon, granted approval to increase prices of medicines by 29% considering the increase of the US Dollar against the rupee," State Minister Channa Jayasumana said today.

He told Parliament that pharmaceutical importers had requested for price increase for pharmaceutical products due to the increase of the US Dollar against the rupee in the past two days.

He said there was a shortage of drugs during the last few days as traders, distributors and importers either hoarded the stocks or stopped distribution thinking that drug prices would go up.

"It was an artificial shortage created due to hoarding of stocks or halting distribution. This situation would ease by the weekend," he said.

The state Minister said there would be no imminent shortage of drugs as private importers have informed that drugs are sufficient for four months and State Pharmaceutical Corporation was in possession of drug stocks sufficient for six months.

He said Finance Ministry yesterday allowed facilities to open LCs to import drugs. (Ajith Siriwardana and Yohan Perera)