Government owed more than Rs.13Bn to medicine suppliers by end 2023

• Minister refutes claims of 300 medicine shortages 

By Yohan Perera and Ajith Siriwardana

The Ministry of Health and State Pharmaceuticals Corporation owed medicine suppliers a total amount of Rs. 13 billion by December 31, 2023, Minister of Health Ramesh Pathirana told Parliament yesterday.

The total amount is categorized depending on the days in arrears. Accordingly, only Rs 2.7 billion is delayed by 360 days, while payment of Rs 5.6 billion is delayed by less than 60 days. Rs 1.5 billion is delayed by 90 days, Rs 1.2 billion by 120 days, and Rs 1.9 billion by 180 days.

Responding to an oral question raised by MP S. M. Marikkar, the minister said outstanding payments were due to 26 companies as of December 31 last year. These comprise both local and foreign suppliers, according to him.
Minister Pathirana said bills of medicine suppliers are being settled gradually. “A sum of Rs. 170 billion has been allocated for medicines this year. It is true that taxes are imposed. A major portion of tax revenue is allocated to pay for medicine. We will settle all outstanding bills this year,” the Minister said. Meanwhile, the Minister refuted the claims that around 300 kinds of medicines are subject to a shortage. “Only 60 kinds of medicines are subject to a shortage as of today. We have already taken measures to rectify the situation. Therefore, state hospitals have been supplied with funds to purchase medicines from private suppliers,” he added.