Forex crisis hits pharmaceutical imports

The present foreign exchange crisis has affected the establishment of Letters of Credit(lc) for import of essential pharmaceuticals including the ones used in the treatment of people suffering from some non-communicable diseases, Daily Mirror learns.

A Letter of Credit is a commitment by the buyer’s bank to pay once the exporter ships the goods and presents the required documentation to the exporter’s bank as proof.

Sri Lanka annually spends Rs.45 billion for the import of its pharmaceuticals. With the dwindling of foreign reserves, the government has imposed curbs on imports except for fuel, essential food items and pharmaceuticals. However, it is still difficult to secure contractual commitments from the banking system to release foreign exchange to be paid for imports.

Asked about the situation, General Manager of the State Pharmaceuticals Corporation (SPC) Dinusha Dasanayake admitted that his office had encountered problems in opening LCS these days. He said there was no shortage of essential pharmaceutical in the country at the moment.

“As for other imports, we also face problems in opening LCS to purchase medicinal drugs. We are in touch with the financial authorities to address the issue. we currently don’t have any shortage of drugs.(KELUM BANDARA)