New pricing formula for medicines coming, Health Minister tells Pharma Chamber

Thursday, 29 June 2023 03:13 - - {{hitsCtrl.values.hits}}

Health Minister Dr. Keheliya Rambukwella

By Darshana Abayasingha

Health Minister, Keheliya Rambukwella, offered some respite to the Sri Lanka Chamber of Pharmaceutical Industry when he told the gathering the recent reduction in prices of medicines is only temporary, and that a more acceptable and long-term solution must be found to prescribe appropriate pricing.

Addressing the chamber’s 62nd Annual General Meeting, the Minister said the recent change was made in view of the current evolution of the dollar against the rupee, and pointed out a new pricing committee has been appointed to devise a permanent mechanism.

Earlier, SLCPI President, Prathaban Mylvaganam, said the industry had complied in full with the reduction of prices over 16% despite numerous challenges. He noted that foreign exchange is not the only factor determining price of medicines, and aspects such as energy costs, transportation, cold-chain management, storage and inflation are critical aspects of working out a fair and representative pricing mechanism. Mylvaganam expressed hope a new formula could be achieved over the next three to four months.

The SLCPI President noted his membership represented 85% of the total pharma industry in the country, with 90% of total private consumption coming through imports that demonstrates the reliance on forex fluctuations. Indian pharmaceuticals dominate the market with 64% of retail space, he said.

In his speech, the Health Minister also noted changes at the National Medicines Regulatory Authority (NMRA), and said this key institution will function with greater stability and efficiency with the recent changes. The SLCPI and other representatives had made several comments to the Health Minister in the past over the lack of stability at the NMRA. Minister Rambukwella stated the health of citizens remains a critical concern of the government, and despite difficulties the state will continue to be innovative and resilient in finding solutions to ensure the well-being of all Sri Lankans. He recognised the role of SLCPI in developing young leaders, and thanked outgoing President Sanjeeva Wijesekera, for ushering in an era of mutual cooperation between the ministry and the chamber, which paved the way for resolving differences to serve the nation better.

During the meeting, the SLCPI recommended the government revisit regulatory fees, which it described as exorbitant and be fixed in Sri Lankan rupees, and proposed changes to the current requirement of 75% residual shelf life on shipment arrivals, which they said was impractical. The Chamber also welcomes new developments at the NMRA administration.

Guest of Honour at the occasion was Indian High Commissioner to Sri Lanka Gopal Bagalay, who noted a greater partnership with India is beneficial to Sri Lanka, as the Indian economy is expected to grow by a trillion dollars every two years. He stated India’s growth is inclusive and centred on technology, with renewable energy generation growing over 23% over the past few years.