January, 13, 2022
In the context of rising prices of all consumer products and the limited availability of most, the people of Sri Lanka, are faced with two ominous questions about which they are justifiably anxious.
Availability of medicines in the future
At least some sections of the public must be aware that there are shortages of some medicines even at present. This is due to many reasons but the foremost of these is the foreign currency crisis in the country which makes it difficult for banks to facilitate the payments through Letters of credit (LC’s). At present, banks, both state and private sector, allows the Pharma Importers to open LC’s only when they have sufficient dollars to safely guarantee payment for the imports. Although medicines are given certain priority, there are other items such as essential food items, Petroleum products, fertilizer etc., that have to be given priority as well by the Government. The result is that importing of medicines is now done on the availability of foreign currency and not on the needs of the country or its patients. In this situation, it is inevitable that there will be shortages of more and more medicines as the foreign exchange crisis deepens.
As for stocking medicines in excess of usual treatment regime by patients, it is not advisable to do so for long periods since these products have to be stored under strict conditions specified by the manufacturers. It is doubtful whether such conditions can be maintained in an average household. In addition, bulk or panic buying by the affluent may deprive the less able segment of the population access to medicines they require for a healthy life.
We as an industry will do our utmost to keep the supplies of medicines available uninterrupted, since we fully realize the implications of failing to do so. In this regard, we earnestly hope that the authorities concerned will give us priority in establishing LC’s on time.
Pricing of Medicines
It will be also catastrophic in the event if the dollar is allowed to float, which will mean that all medicines will have to be sold at a loss and as such, the entire industry will collapse in the face of such a threat where the importation would obviously stop as the cost of importation will be higher than the approved prices.
There is no solution to this dilemma than removing the price control of medicines and implement a fair and equitable pricing mechanism which will link the price of medicines to the dollar, inflation and direct costs such as raw material, fuel and freight charges, which will make the importing and marketing of medicines viable. As difficult as it may sound, the authorities will have to choose between having medicines at a cost and not having medicines at all.
We as an ethically responsible industry, have already sought the intervention of the courts in order to bring about a transparent pricing mechanism for Pharmaceuticals & Medical Devices that is fair to all. Such a mechanism may be the only salvation for the industry and the patients of the country and it is in the best interest of all concerned if the process is expedited by the authorities concerned by the government.
We would like to give a solemn undertaking to the public that we will do our utmost to see that the drug pricing is fair and equitable. The members of the SLCPI have an exceptional record of maintaining an uninterrupted supply of efficacious, safe & quality medicines at globally competitive prices over many decades while supporting the continuous medical education of the country.
(This press release issued by the Sri Lanka Chamber of the Pharmaceutical Industry clarifying and offering their stance on the availability of pharmaceuticals in the market and the impact the foreign exchange crisis is having on the industry.)