The newly elected regime planning to boost private pharmaceutical manufacturing

 

The state is drawing up plans in the coming years to enable private investors to develop pharmaceutical manufacturing facilities of export quality in Sri Lanka. The country is spending a significant amount of foreign currency in importing 85 per cent of the pharmaceuticals that Sri Lanka wants, the media team of the Prime Minister said in a statement.

Chairman Basil Rajapaksa of the Presidential Task Force for Economic Recovery and Poverty Reduction, outlined the country's goals during a meeting. The shift comes in the backdrop of the state purpose of meeting the capability of domestic pharmaceuticals and exporting within the next five years. Last afternoon, at a meeting of industry experts and officials from related ministries, Rajapaksa suggested the intentions of the state.

Rajapaksa claimed in a press release that if Sri Lanka, as a leading exporter of ready-made garments, is adequately sponsored, it should be able to become an exporter of pharmaceuticals within five years.

Due to an elderly population, the demand for healthcare services is growing. The state is continuing its strategy of offering free public hospital healthcare. In 2018, government spending on the health sector stood at about $1.3 billion. Increasing entry to private health services is also a government focus, as the demand for healthcare services is difficult for the public sector alone to meet. The private sector has invested heavily in healthcare, especially in Colombo and some of the major cities, which has eased some of the state's burden.

Demand for health care in the private sector has risen with rising income rates and changing preferences. Health insurance coverage has also promoted growth in the private health care sector.  According to experts in the pharmaceutical industry, in the last five years, the local pharmaceutical industry has expanded at a rate of about 15 per cent, and the sector has good prospects for future high-volume growth. The state is promoting innovation in locally manufactured drugs in the pharmaceutical industry.

In 2019, the government issued regulations setting maximum retail prices for 60 formulations of medicinal products. The price control applies to all in-schedule branded and generic versions of drug formulations. The Regulatory Authority for Cosmetic Drugs and Devices regulates the pharmaceutical sector to ensure the quality, safety, and usefulness of drugs and medical devices.

OSL Take: The upgrading of The State Pharmaceutical Manufacturing Corporation (SPMC) of Sri Lanka would increase its production capacity. However, the company is still unable to meet the total demand for medicines in the local market. Hence, there is an opportunity for overseas pharmaceutical companies to explore the prospect of setting up medicine production plants in Sri Lanka. Companies could also look at shipping pharmaceuticals to international markets after setting up base in Sri Lanka.

 VBS/AT/09/10/2020/Z_TB3