Pharma trade selling earlier imports at revised price; pharmacies slam profiting

Amid the shortage of essential drugs in the country’s hospitals and pharmacies, the government allowed a sharp price increase this week, just as the US dollar was allowed to float freely.

For months, even paracetamol was not available.

Prices of 60 essential price- controlled pharmaceuticals will increase by 29%, the state minister of pharmaceuticals, Dr Channa Jayasumana, told parliament on Friday.

However, he said that importers will not be allowed to arbitrarily increase prices by creating an artificial shortage.

But importers said that it was the government's requirement of obtaining long- term credit that encouraged hoarding.

The Sri Lanka Chamber of Pharmaceutical Industry said that it was impossible to sell drugs at the existing controlled prices.

Chamber president Sanjeewa Wijesekera said that the condition that imports adhere to a 120 to 180 days credit facility from suppliers has made drugs more expensive.

“The goods were bought when the US dollar was pegged at Rs 202, and now it has to be purchased at the current rate of Rs 260. This has made the already imported drugs expensive when settling the letters of credit,’’ he said. He said purchases had been made four months ago.

“Also, the companies have sold half of the drugs from their last imports. If we release the balance at the then-controlled prices. It will be a loss,’’ he said.

There is a serious shortage of essential drugs.

The head of the Society of Government Pharmacists, Ajith Thilakaratne said there is a shortage of drugs particularly for cancer, kidney and thalassaemia patients.

While accepting that prices of essential drugs have to be increased considering the forex crisis in the country, he said that importers should not be allowed to benefit overnight at the expense of the public already burdened with the rising cost of living.

He conceded that the drug shortage has been created artificially by importers who had been holding on to stocks in anticipation of a price increase.

“Stop them from profiting from the price increase,’’ he urged.

SGP had forewarned the government of a likely drug shortage three months in advance, but this had been ignored.

Howe ve r, the S t at e Pharmaceutical Corporation said prices at Osu Sala outlets will not change drastically.

The general manager K.M.D.R Dasanayake, said prices are set on low margins and that patients can buy their drugs by producing their prescription at 50 outlets and 102 franchised outlets across the country.