Govt. seeks help from WB, ADB and UN

The Government has sought assistance from the World Bank, the Asian Development Bank (ADB) and the United Nations (UN) to obtain immediate medical supplies.

Pharmaceuticals Production, Supply and Regulation State Minister Channa Jayasumana said the Government had asked for USD 40 million as immediate assistance from the World Bank to buy stocks of essential medicines.

Due to the prevailing foreign exchange crisis, the state ministry has been unable to get stocks of essential medicines released for more than a week. Importers have not been able to open letters of credit due to the dollar shortage.

“The World Bank has responded saying it is prepared to offer an immediate relief

package and has asked the Government to submit the requirements, and how much money is needed. We have asked for USD 40 million in immediate assistance. That would help us to release stocks of medicines that have been stuck at the port for more than a week,” the state minister said.

State Ministry officials met Treasury Secretary S.R. Attygalle on Thursday and requested the funds to get medicines released. The Treasury agreed to release US$ 18 million in immediate assistance to open letters of credit but this was not enough. This prompted the state ministry to ask for international assistance.

Prof. Jayasumana said they were also hopeful of a positive response from the ADB and the UN regarding the Government's request.

Funds to purchase medicines through the Indian line of credit would take some more time, the state minister said. “We initially requested for US$ 150 million but have now asked that it be increased up to US$ 300 million. That will help us to overcome the crisis.”

Meanwhile, pharmaceutical importers have also asked for a revision of the Maximum Retail Price (MRP) of 60 medicines.

Last month, the prices of these 60 drugs were increased by 29% through a gazette, which also increased the prices of non-essential drugs by the same margin.

The gazette, though, also imposed a condition on pharmaceutical importers preventing them from increasing prices again for 60 days irrespective of the fluctuation of the rupee against the US dollar.

Companies have now asked for a further price increase of these drugs due to the rupee’s drastic fall against the dollar over the past several weeks.

The MRP is decided by the pricing committee of the National Medicines Regulatory Authority (NMRA). The committee is currently chaired by Dr Palitha Abeykoon, who will have to decide whether an increase is justified, the state minister said.

“The earlier price increase was given on the condition that the prices would not be increased for two months, but if the pricing committee recommends a further increase, we will consider it. Any price revision will require a new gazette,” Prof. Jayasumana said.