Warns domestic pharmaceutical production could collapse to 5% from current 25%
Local manufacturers supply over 250 products, meeting 30 percent of government pharmaceutical needs
Strengthening local pharmaceutical manufacturing “no longer an option” but “of national importance to ensure health and pharmaceutical security
The Sri Lanka Pharma Manufacturers Association (SLPMA) issued a stark warning, stating the country’s domestic pharmaceutical production could plummet to a mere 5 percent of government supply if critical buyback agreements are not extended.
This dire prediction came during an address by SLPMA President Nalin Kannangara at the Association’s Post-AGM session held in Colombo last Friday.
Despite starting its pharmaceutical manufacturing journey alongside neighbours India, Bangladesh, and Pakistan in the 1960s, the country remains heavily import-dependent, sourcing over 80 percent of its medicines.
He contrasted this with India’s self-sufficiency and global ‘pharmacy of the world’ status, Bangladesh’s over 95 percent self-sufficiency and exports to 157 countries, and Pakistan’s 70 percent self-sufficiency.
“Something has gone wrong somewhere during this process,” Kannangara stated, acknowledging the historical underperformance while emphasising it’s “never too late” to rectify the course.
Kannangara pinpointed the Public-Private Partnership (PPP) buyback agreement, introduced in 2015, as the catalyst for recent progress. This agreement spurred approximately US$ 200 million in private investment, leading to new facilities and growing the SLPMA to 25 member companies supplying to the government.
The results were tangible. From supplying only 17 products to the government in 2015, local manufacturers now supply over 250 products, meeting 30 percent of government pharmaceutical needs. However, Kannangara delivered a critical message: “In the absence of the buyback agreement, the local manufacturers’ market share will drop to 5 percent.”
He warned that failing to extend the agreement would render the US$ 200 million investment and the 25 factories unviable, leading to “significant loss of revenue,” jeopardising companies as “going concerns” and wasting investments in Research & Development (R&D). “After investing so much, this will result in a significant loss,” he stressed.
Citing global uncertainties such as pandemics, conflicts, rising healthcare costs, and Non-Communicable Diseases (NCDs), Kannangara declared that strengthening local pharmaceutical manufacturing is “no longer an option” but “of national importance to ensure health and pharmaceutical security.”
Kannangara summarised the industry’s precarious position: 25 companies manufacturing 250 plus products across 10 dosage forms, supplying 30 percent of government needs , a dramatic increase from 5-7 percent before the 2015 agreement. He warned that losing the buyback would undo this progress.
The SLPMA urgently requested the formation of a high-level steering committee comprising representatives from the Ministries of Health, Industries, Finance, NMRA, Industrial Development Board, Export Development Board, University Grants Commission, and the industry itself. “SLPMA is ready to play our part with full accountability, transparency, and commitment,” Kannangara declared.
He concluded with a vision: “We ask [for] every Sri Lankan [to have] reliable access to safe, high-quality, efficacious medicines at an affordable price. We need to dream and emerge Sri Lanka as a regional leader in pharmaceutical manufacturing.” However, this dream, he stressed, hinges on immediate government intervention to extend the buyback and implement the proposed reforms.
The Sri Lanka Pharma Manufacturers Association (SLPMA) issued a stark warning, stating the country’s domestic pharmaceutical production could plummet to a mere 5 percent of government supply if critical buyback agreements are not extended.
This dire prediction came during an address by SLPMA President Nalin Kannangara at the Association’s Post-AGM session held in Colombo last Friday.
Despite starting its pharmaceutical manufacturing journey alongside neighbours India, Bangladesh, and Pakistan in the 1960s, the country remains heavily import-dependent, sourcing over 80 percent of its medicines.
He contrasted this with India’s self-sufficiency and global ‘pharmacy of the world’ status, Bangladesh’s over 95 percent self-sufficiency and exports to 157 countries, and Pakistan’s 70 percent self-sufficiency.
“Something has gone wrong somewhere during this process,” Kannangara stated, acknowledging the historical underperformance while emphasising it’s “never too late” to rectify the course.
Kannangara pinpointed the Public-Private Partnership (PPP) buyback agreement, introduced in 2015, as the catalyst for recent progress. This agreement spurred approximately US$ 200 million in private investment, leading to new facilities and growing the SLPMA to 25 member companies supplying to the government.
The results were tangible. From supplying only 17 products to the government in 2015, local manufacturers now supply over 250 products, meeting 30 percent of government pharmaceutical needs. However, Kannangara delivered a critical message: “In the absence of the buyback agreement, the local manufacturers’ market share will drop to 5 percent.”
He warned that failing to extend the agreement would render the US$ 200 million investment and the 25 factories unviable, leading to “significant loss of revenue,” jeopardising companies as “going concerns” and wasting investments in Research & Development (R&D). “After investing so much, this will result in a significant loss,” he stressed.
Citing global uncertainties such as pandemics, conflicts, rising healthcare costs, and Non-Communicable Diseases (NCDs), Kannangara declared that strengthening local pharmaceutical manufacturing is “no longer an option” but “of national importance to ensure health and pharmaceutical security.”
Kannangara summarised the industry’s precarious position: 25 companies manufacturing 250 plus products across 10 dosage forms, supplying 30 percent of government needs , a dramatic increase from 5-7 percent before the 2015 agreement. He warned that losing the buyback would undo this progress.
The SLPMA urgently requested the formation of a high-level steering committee comprising representatives from the Ministries of Health, Industries, Finance, NMRA, Industrial Development Board, Export Development Board, University Grants Commission, and the industry itself. “SLPMA is ready to play our part with full accountability, transparency, and commitment,” Kannangara declared.
He concluded with a vision: “We ask [for] every Sri Lankan [to have] reliable access to safe, high-quality, efficacious medicines at an affordable price. We need to dream and emerge Sri Lanka as a regional leader in pharmaceutical manufacturing.” However, this dream, he stressed, hinges on immediate government intervention to extend the buyback and implement the proposed reforms.
Source : https://www.dailymirror.lk/business-news/Pharma-industry-warns-of-collapse-without-buyback-extension/273-314083
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