Pharma importers warn shortage of life-saving drugs fast-approaching

• NMRA unable to get price increases of regulated pharmaceuticals ratified with no subject minister 
• SLMA warns govt, of far worse casualties than from pandemic if stocks not replenished
• US$ 1 bn Indian credit line inadequate to meet current demand for essential pharmaceuticals

By Nishel Fernando
In the absence of a functioning government and a subject minister in place, Sri Lanka’s private sector pharmaceutical importers who are already grappling with a severe foreign exchange shortage and an inefficient pricing mechanism fear a faster than anticipated shortage of critical life-saving medicines in the market.

Although, the Pricing Committee of National Medicines Regulatory Authority (NMRA) has recommended several price increases, NMRA is unable to get these price increases of regulated pharmaceuticals ratified with the subject minister’s post remaining vacant following the resignation of the Cabinet of Ministers amid the current political crisis.

“As there is no Cabinet minister in-charge of pharmaceuticals, there’s no authority ratify price increases for regulated pharmaceuticals,” Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI), President Sanjiva Wijesekara told Mirror Business.

He pointed out that the government mechanism has also failed to grant price increases in a timely manner keeping up with the pace of rupee depreciation.

“Rupee keeps depreciating on a daily basis, and we are unable to adjust prices accordingly. It takes a while for the government to approve and gazette price increases. By the time such price increases come into effect, the rupee is further depreciated and the price increase is not of any use,” he said.

With life-saving imported pharmaceuticals including vital drugs depleting in the State-run facilities leading to shortages, Sri Lanka Medical Association (SLMA) has warned the government on casualties far worse than from the pandemic in coming days if those stocks are not replenished.

Simultaneously, demand for pharmaceuticals imported by private sector has seen a rapid increase with people who can afford to pay for pharmaceuticals turning to private sector amid shortages in the State-run facilities.

“When there’s a shortage in the government sector, people who could afford approach the private sector and the private sector demand further goes up. However, in this particular situation, we are in no position to cater to this rising demand,” Wijesekara stressed.

Despite pharmaceuticals having been declared as an essential commodity, he noted that importers have to wait in queues to obtain approvals for letters of credit (LCs) facilities from banks in order place import orders.

“Unfortunately, we don’t get required fund allocations from banks to import pharmaceuticals. So, it’s not been prioritized. It takes months to import pharmaceuticals now,” he added.
With current stocks fast depleting, SLCPI fears that the country would run out of stocks of many critical pharmaceuticals in coming days and weeks.

Commenting on pharmaceutical imports under the US$ 1 billion Indian credit line, he noted that its inadequate to meet the current demand for essential pharmaceuticals.
It’s said that around US$ 200 million has been allocated for imports of pharmaceuticals under the credit line. 

With no functioning government in place to negotiate solutions including a pricing formula, the pharmaceutical importers are in limbo as to how to move forward facing an imminent crisis.
“With whom can we discuss now when there’s no subject minister?  The government should understand at least in terms of essential goods such as pharmaceuticals are concerned, there should be a minister in-charge,” Wijesekara remarked.