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Monday December 11th, 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’s ousted utilities regulatory chief convinced he’ll be president

ECONOMYNEXT — Sri Lanka’s former public utilities regulatory chief Janaka Ratnayake, who was removed in May following a parliamentary vote, has confirmed that he intends to run for president.

Speaking to reporters on Sunday December 11 in the wake of an hours-long island-wide power outage the previous evening, Ratanayake said he will be the definite winner at a future presidential poll.

“I announced [my intention to run] officially on December 07, my birthday. I’m definitely coming as a presidential candidate. That’s not all, I’m the definite president at a future presidential election,” he said.

Ratnayake, in his first media appearance in months, was responding to questions about newspaper advertisements published on December 07 announcing his future candidacy.

Sri Lanka’s parliament on May 24 opted to remove the former chairman of the Public Utilities Commission of Sri Lanka (PUCSL), with 123 members voting in favour. This marked the first time a head of an independent government commission was sacked by Sri Lanka’s parliament.

Power & Energy Minister Kanchana Wijesekara, who had been at loggerheads with the regulatory chief, said at the time that the official had acted obstinately without the concurrence of fellow commission members.

The minister levelled five charges against Ratnayake, the first twoof  which were based on a February 10 verdict by the Court of Appeal rejecting an application filed by the offiical against an electricity tariff hike. Opposition legislators slammed the decision saying it undermined independent commissions.

Ratnayake’s presidential ambitions have been known for some time. A day before parliament voted to remove him, he told reporters: “If I can change the country, I will definitely join politics, because my intention is to serve the people and what is right.”

Ratnayake had blocked delayed a tariff hike in early 2023, resulting in losses to the state-run Ceylon Electricity Board (CEB), Minister Wijesekara claimed at the time. The PUCSL had als onot enabled tariff hikes for nine years, requiring its governing law to be changed, Wijesekera said.

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Sri Lanka wants university research to lead to commercially viable products

ECONOMYNEXT – Sri Lanka’s ministry of industries wants to ensure commercially-ready products and services are produced by university research, by facilitating partnerships with factories and entrepreneurs.

After a currency crisis, Sri Lanka’s government is in a drive to boost its trade balance by increasing exports.

“Our export basket hasn’t changed recently, partly because our small and medium entrepreneurs don’t have sufficient research and development facilities (like the multinationals) to innovate their products for the export market,” Additional Secretary of the Ministry of Industries, Chaminda Pathiraja said.

“At the same time, state universities and research institutes produce a large amount of research findings yearly, which end up sitting in those institutions; they don’t reach the industry,” Pathiraja said at a press briefing to announce a program on commercialization of new products and research, to be held tomorrow at the Waters Edge.

The networking forum will bring innovators and manufacturers together to focus on the commercialization of research for the value added tea, coir, spice, dairy products, gem and jewellery and packaging products industries.

“We want to encourage collaboration, through programs like our University Business League etc, so that the research output can be commercialized, and what is produced by our factories can increase in quantity and quality. We must focus on the export market.”

The objective of this program, he said, was to reduce the gap in acquiring innovators’ ideas and skills by the investors, and ultimately boost the manufacturing sector’s efficiency in alignment with the export market.
(Colombo/Dec11/2023)

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Sri Lanka rupee opens at 327.00/50 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee opened at 327.00/50 to the US dollar on Monday, from 327.00/30 Friday, dealers said.

On the Colombo Stock Exchange, both indices opened up: The All Share Price Index 0.28 percent at 10,823, and the S&P SL20 0.35 percent at 3,113.85.

Bond yields were up.

A bond maturing on 01.08.2026 was quoted at 14.05/20 percent from 14.05/15 percent.

A bond maturing on 15.01.2027 was quoted at 14.05/20 percent from 14.10/25 percent.

A bond maturing on 01.07.2028 was quoted at 14.20/50 percent from 14.20/35 percent.
(Colombo/Dec11/2023)

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