ECONOMYNEXT -Sri Lanka’s state hospital system is facing a shortage of specialists, a top official said as doctors leave the country in the wake of the worst currency crisis in the history of the island’s flexible exchange rate central bank.
” We have a shortage of specialists in the country, because they are leaving the country,” Director General of Health Asela Gunawardena told reporters Monday.
“We hope to assign specialist doctors who are coming back from foreign training. But it will take some time and we will see some sort of a shortage within that time period.”
Sri Lanka’s mainstream economists printed money for two years to mis-target rates and push growth without working for it (monetary stimulus or output gap targeting) after the International Monetary Fund taught the country to calculate an output gap.
In 2022, the rupee collapsed from 200 to 360 to the US dollar after an attempt was made to ‘float’ the rupee without removing a surrender rule first. The rupee has since appreciated after rates were hiked and the surrender rule was removed.
After a surrender rule by the Central Bank was lifted earlier this year the rupee started appreciating and is currently trading at the spot market below 300 to the US dollar.
Within the first eight months of 2022, 477 doctors including 125 consultants have left the country, according to spokesmen for the Government Medical Officers Association.
The currency crisis and the resulting forex shortages also disrupted the flow of imported drugs for the health system, which is experiencing rolling shortages of drugs.
“We still have a shortage of 100-120 medicines, ” Gunawardena said. “We have ordered them and we are getting them and going forward we will be able to minimize the shortage”. (Colombo/ June 23/2023)