Drug importers warn of shortages if delays and dollar problem are not addressed
The delay in certifying imported medicinal drugs is adding to the forex-crisis-driven supply chain disruption, industry sources said. If immediate steps were not taken to address the issue, the country would experience a severe shortage of drugs in the next three months, pharmaceuticals importers warned.
The Sri Lanka Chamber of Pharmaceutical industry (SLCPI) President Sanjeewa Wijesekera said importers had been restricted by inordinate delays in the registration and renewal process, following the data deletion scam at the National Medicines Drug Regulatory Authority (NMRA).
With registrations now being done manually, importers say that to renew the registration of a drug it takes several months. This has resulted in a backlog in registration and certification of drugs.
Although importing companies had submitted their dossiers six months ahead of the deadline for registration, as required by the NMRA, the regulator had failed to clear the documents on time, importers complain.
Apart from creating drug shortages in the market, the delays have led to a situation where drugs expired in January 2022 are still to receive clearance.
The NMRA grants five years on a full registration and a year or two on a provisional registration of a drug.
Exacerbating the problem is the forex crisis. Importers say they do not get the required dollars from state banks on time to go ahead with imports.
In addition, importers say they have been hit by the price control on certain drugs.
As the prices of about 60 drugs have been fixed and they cannot sell them above the controlled price, the industry is reluctant to pay more for dollars and import the drugs.
The SLCPI said it was lobbying for an increase in the controlled prices of these drugs.
“The government should take immediate steps, prioritise the industry, remove all red taps in the registration process and grant us the dollars we need for the imports,” Mr. Wijesekera said.
Meanwhile, the All Island Pharmacy Owners Association (AIPOA) said if the government failed to take immediate action, there would be a major disaster in the health sector.
Its president, Chandika Gankandara, said that already the industry was experiencing a five percent drug shortage.
He said there was a shortage in paracetamol, antibiotics for bladder infection, urinary tract infection, pneumonia and drugs for heart related diseases.
It is learnt many small time importers have frozen their businesses due to the dollar shortage.
“The Government has to take the crisis seriously. These are lives we are talking about,” he said.
The emerging local pharmaceutical manufacturing industry has also been affected by the shortage of dollars for it also depends on imported raw material for production and packaging.
The Sri Lanka Pharmaceutical Manufacturing Association (SLPMA) said there had been a 50 percent drop in production in the past four months.
The local industry meets about 15 percent of the country’s demand and has plans to expand its market share up to 50 percent in the next 3 years.
SLPMA President Sanjaya Jayaratne said the industry needed immediate attention and the required forex be granted to continue with production.
The SLPMA, he said, was lobbying for a 10 percent price increase on the drugs manufactured locally.
Meanwhile, the State Pharmaceutical Corporation denied there is a shortage of drugs in hospitals.
General Manager K.M.D.R. Dassanayake said all hospital pharmacies and Osu Sala outlets had been supplied with the required drugs.
But he admitted that the SPC buffer stock is depleting.
“But we are managing,” he said. However, at state hospital clinics, patients who come for regular clinics were turned away without their quota of drugs, it is learnt. They say they are compelled to go to private pharmacies with doctors’ prescriptions to buy certain drugs that are not available at state hospitals.