Initial interest positive in local pharma ventures

Some domestic business people are showing interest in the government's plan to make Sri Lanka selfsufficient in pharmaceutical drugs in the next three years.

State minister for pharmaceutical drugs, Dr. Channa Jayasumana, said 20 local manufacturers have shown interest and some have already started production.

Products include gloves, masks, and saline widely used in the health care.

Plans are also underway to target the most commonly used drugs by patients with non-communicable diseases including hypertension, cancer, and diabetes.

The government spends around Rs. 130 billion a year for pharmaceutical drugs imports.

At present only 15% of the country's requirement is met by local manufacturers.

The government looking for foreign investors and has allocated 400 acres in the Free Trade Zone (FTZ) at Hambantota.

Mr Jayasumana encouraged the Sri Lankan diaspora to invest.

Another 200 acres has been made available in Anuradhapura for local investors and 22 local manufacturers have shown interest.

He assured that imports will not banned.

“Our aim is to give quality and affordable drugs,’’ he said.

He said he had discussions with the Government Medical Officers Association (GMOA) which has agreed to promote local brands when prescribing medicines. “GMOA president, Anuruddha Padeniya has promised to cooperate with us,’’ he said.

Mr Jayasumana, said once the country reaches selfsufficiency “we will look to export drugs. We are looking at south Asian and African markets,’’ he said.

State Pharmaceutical Manufacturing Corporation (SPMC), Chairman, Prof. Uthpala Indrawansa, said the SPMC presently provides 10% of the local pharmaceutical requirement. The bulk is supplied to the medical supplies division (MSD). The SPMC has also plans to expand its factory at Ratmalana.

Also, it is targeting public/ private partnerships to encourage investment.

Prof. Indrawansa, said 15 investors are interested. The manufacturers will be regulated by the SPMC and made under the SPMC logo and will supply to the MSD.

Two factories are in production and the rest under construction.

A Rs. 18 billion saline manufacturing industry supplying to the local market will in the next eight months export the product, he said.

A second group of 22 entrepreneurs is awaiting cabinet approval.

Of this, two are jointventures with local entrepreneurs, a 60:40 operation with an Indian and Chinese partner. Among the locals are leading biscuit company Maliban, and Melwa the steel manufacturer.

Meanwhile, the Sri Lanka Pharmaceuticals Manufacturers Association, said that the government's move was timely as global pharmaceuticals companies are looking to move their industries to Asia.

Association president, Sanjaya Jayaratne, said that Sri Lanka's strategic position in terms of logistics will attract investors as exporting will be cheaper. “Also we have the added advantage of cheaper labour,’’ he said.

The National Medicine Regulatory Authority said it would support the government's quest for self sufficiency and will continue regulating and assuring quality, imported and local drugs.

Chairman, Prof. Asita Dr Silva, said it is important to save foreign exchange.

“Our job is to regulate quality and pricing and give affordable drugs to the public. We will give priority to local products,’’ he said.