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Thursday March 23rd, 2023

Sri Lanka faces essential drug shortage; Experts warn of health crisis

ECONOMYNEXT- Sri Lanka’s state-run hospitals are running out of essential medicine and medical equipment while the shortage threatens a major health crisis due to possible medicine supply chain collapse, a health sector trade union said.

Sri Lanka imports 80 percent of its medicines, but severe shortage of dollars due to the ongoing economic crisis has led to shortage of essential drugs and importers are struggling to meet the demand in the country.

Ministry of Health is also facing difficulties in importing the necessary medicine creating a drug shortage in state-run hospitals and pharmacies, affecting forcing hospitals to limit the medications for only for immediate and essential cases.

Indika Rathanayaka , the North Western Convener of the Government Medical Officers Association (GMOA), a doctors’ trade union, told reporters on Wednesday (06) that the current stocks in most hospitals will last only two weeks.

“We saw this problem a month ago. Within another month time, if this does not get solved, we are going for health crisis in the country as well,” Rathanayaka said.

Due to the shortage of gas and fuel, the government has allocated the remaining dollars to obtain fuel, resulting in commercial banks to decline the requests of medicine importers to open Letters of Credit to import drugs.

India has granted a 1 billion US dollar credit line including 200 million US dollars for essential medicine from the Indian suppliers, Sri Lankan government officials have said.

Tenders have been called from the Indian suppliers by the State Pharmaceutical Corporation to obtain a list of essential medical supplies given by the Medical Supply Division of the
Ministry of Health, officials say.

According to the State Minister of Pharmaceutical Production, Supply and Regulation, Channa Jayasumana, Sri Lanka is currently in need of 1,500 medicines and 3,000 surgical/medical equipment
for the state-run hospitals.

Due to the lack of medicine supplies several hospitals are forced to postpone or limit number of surgeries.

The Indian credit line only allows the government to purchase medicine and leaves private medicine suppliers to struggle to imports essential drugs.

An industry representative told EconomyNext that private sector drug supply to the market has fallen more than 30 percent due to the dollar shortage.

“The situation is much worse now than when we explained it earlier this month,” the source told EconomyNext.

“The banks do not entertain any LC applications and ask for credit for up to 180 days for both LCs and documents against acceptance documents.”

“In the absence of any forward booking mechanism, who knows what the rupee will be against the USD in 180 days? How do you cost your shipments?”

Over 50 percent depreciation of the rupee also has weighed on the drug imports now as the drug prices have risen nearly 30 percent since the central bank allowed depreciation.

A health official said the Treasury released 65 billion rupees to buy medicine and medical equipment, but the government needs further 15 million rupees to manage the price escalation after rupee fall.

“The ministry has sent request to the World Health Organization and other international health organizations to support in obtaining essential drugs for the country,” Saman Rathnayaka, the Secretary to the State Minister of Pharmaceutical Production told privately owned Derena, (Colombo/April 6/2022)

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  1. Mohomed Azeez says:

    Mohomed Azeez,
    8900, Penquin Road,
    Richmond, VA 23229.
    fariqueazeez@gmail.com
    8046645203

    Mr. Albert Bourla,
    Chairman and Chief Executive Officer,
    235 East 42nd Street,
    New York 10017

    Dear Sir,

    I am writing this to you to bring to your attention about the current crisis that is going on in Sri Lanka. As a Sri Lankan American I am deeply concerned about the suffering and hardship Sri Lankans are going through now due to financial mismanagement of the country’s wealth by the ruling politicians.

    Sri Lanka’s economic crisis has deteriorated into a medical crisis, with the top medical union declaring a national health emergency over a life-threatening shortage of drugs. Due to the lack of medicine supplies several hospitals are forced to postpone or limit number of surgeries. Currently the government has sent request to the World Health Organization and other international health organizations to support in obtaining essential drugs for the country.

    Given the situation, I very respectfully request you to provide a medical aid package to Sri Lanka to help the suffering people get over the current situation. If need be, I am ready to coordinate this effort with the health authorities in Sri Lanka.

    This request is coming from the bottom of my heart without expectations of any personal gain, but with the welfare of the Sri Lankan population at heart. I hope this receives your positive attention and expect a response from you soon.

    Thank you,
    Mohomed Azeez
    04/08/2022

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Your email address will not be published. Required fields are marked *

  1. Mohomed Azeez says:

    Mohomed Azeez,
    8900, Penquin Road,
    Richmond, VA 23229.
    fariqueazeez@gmail.com
    8046645203

    Mr. Albert Bourla,
    Chairman and Chief Executive Officer,
    235 East 42nd Street,
    New York 10017

    Dear Sir,

    I am writing this to you to bring to your attention about the current crisis that is going on in Sri Lanka. As a Sri Lankan American I am deeply concerned about the suffering and hardship Sri Lankans are going through now due to financial mismanagement of the country’s wealth by the ruling politicians.

    Sri Lanka’s economic crisis has deteriorated into a medical crisis, with the top medical union declaring a national health emergency over a life-threatening shortage of drugs. Due to the lack of medicine supplies several hospitals are forced to postpone or limit number of surgeries. Currently the government has sent request to the World Health Organization and other international health organizations to support in obtaining essential drugs for the country.

    Given the situation, I very respectfully request you to provide a medical aid package to Sri Lanka to help the suffering people get over the current situation. If need be, I am ready to coordinate this effort with the health authorities in Sri Lanka.

    This request is coming from the bottom of my heart without expectations of any personal gain, but with the welfare of the Sri Lankan population at heart. I hope this receives your positive attention and expect a response from you soon.

    Thank you,
    Mohomed Azeez
    04/08/2022

Sri Lanka establishes committee to investigate aircraft incidents

An aircraft lands at the Jaffna International Airport, which was opened in October 2019 and promises to push the tourism frontiers in Jaffna.

ECONOMYNEXT: Sri Lanka’s has established an expert committee under the state-run Civil Aviation Authority to investigate aircraft accidents and to implement precautionary methods in the Sri Lankan airspace, an Official said.

“Even if it is only one flight, there is a chance an accident may occur,” Civil Aviation Authority of Sri Lanka, Director General, P. A. Jayakantha said.

“This particular committee is there to investigate aircraft accidents and act as a mechanism to take over if something goes wrong”.

Sri Lanka has encountered around 2,700 minor aircraft accidents and incidents mostly on the ground in the 19 years through 2021, the CAA annual reports showed.

The new committee will analyze the past accidents and take precautionary measures while also conducting investigations and provide independent reports in the future, Jayakantha said.

The team is provided with required training and qualifications by the CAA along with an International organization, free of charge.

“Internationally also it is a requirement to have a team to investigate the aircraft accidents,” Jayakantha added.

“For a long time we have not fulfilled this requirement and that is why we established this team with the cabinet approval. Moreover, recently, Sri Lanka’s two aircrafts, one training aircraft and a commercial aircraft met an accident”

The committee will be on active duty, until the Accident Investigation Act is passed and a proper Aircraft Accident and Incident Investigation Bureau is established. (Colombo/ Mar23/2023)

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Sri Lanka bond yields steady, Rupee 319/325 at close

ECONOMYNEXT – Sri Lanka’s treasury bond yields closed steady on Thursday while rupee closed weaker, dealers said.

A 01.07.2025 bond closed at 30.60/31.00 percent on Tuesday, down from 30.25/75 percent on Wednesday.

A 15.09.2027 bond closed at 27.80/28.10 percent, steady from 27.90/28.00 percent from Wednesday.

Sri Lanka rupee closed at 319/325 against the US dollar depreciating from 318/320 from a day earlier. (Colombo/ March23/2023)

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Sri Lanka shares dive to two-week low on local debt restructuring fears

ECONOMYNEXT – The Sri Lanka market fell for a fourth session to a two-week low on Thursday, led by financials, as worries over domestic debt restructuring continued after the IMF loan was approved earlier this week resulting in investors adopting a wait-and-see approach until further clarity was provided, analysts said.

The main All Share Price Index (ASPI) closed down 1.38 percent or 131.07 points to 9,395.98, lowest since March 02.

Analysts said, majority of the banks have been on slower investment trends on fears of domestic debt restructuring after the IMF approval and waiting for more clarity on the local debt restructuring.

“The market is on muted sentiments despite the IMF loan being approved and is going through a period of consolidation,” Ranjan Ranatunga of First Capital Holdings said.

The market saw a net foreign outflow of 298 million rupees and the total offshore inflows recorded so far in 2023 to 3.3 billion rupees.

The most liquid index, S&P SL20, closed 1.64 percent, or 45.33 points, down at 2,722.94.

The market saw a turnover of 3.4 billion rupees on Thursday, above this year’s daily average of 1.8 billion rupees.

This is the highest turnover generated since March 08, which is when the market was driven off of positive sentiments from International Monetary Fund deal hope after Chinese assurances.

Top contributors to revenue was Agalawatte Plantations, on off board transactions of a stake change, contributing revenue of 1.6 billion rupees, Ranatunga said.

Top contributors to revenue industry wise was Food and Beverage and Telecommunications.

Sri Lanka Telecom has been seeing positive uptrends as the Secretary to the Treasury has informed the Board of Directors of Sri Lanka Telecom PLC (SLT) and Lanka Hospitals PLC that the Cabinet of Ministers has granted approval in principle for the divestment of the stakes held by the Treasury Secretary in the two companies.

Top losers were Sampath Bank, Hatton National Bank and Commercial Bank.

Sri Lanka is looking at options to re-structure domestic debt, or local law local currency debt (LLLC), without harming the banking sector and announce them the International Monetary Fund said in a report.

Banks have been witnessing profit taking and selling pressures after continuous uptrends prior to the IMF loan had been approved.

Analysts said, selling pressures is expected to ease as the IMF hopes to reduce inflationary pressures which will in turn lead to reductions in interest rates. (Colombo/Mar23/2023)

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