Keheliya turns down request for abolishing price control on medicine

Industry leader has sought court intervention

By Shamindra Ferdinando

Health Minister Keheliya Rambukwella yesterday (17) said that in spite of difficulties caused by the foreign currency crisis price control on imported medicines couldn’t be done away with.

Abolition of price control on drugs would heap an enormous burden on the vast majority of people, Minister Rambukwella said.

Lawmaker Rambukwella said so when The Island sought his response to the Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) requesting the government to do away with price control. Claiming that the grouping imported over 80 percent of medicines into the country, the SLCPI recently warned of possible collapse of the industry unless remedial measures were taken swiftly.

Minister Rambukwella said that recently he met an SLCPI delegation at their request to discuss issues at hand. “Of course, I understand the difficulties experienced by all sectors, including the pharmaceutical trade. However, price control as regards medicine cannot be done away with,” Minister Rambukwella said.

The SLCPI has pointed out to the Minister that at the moment medicines were the only commodity under price control in the local market. The Health Minister asserted that it wouldn’t be fair to compare the medicine with other commodities.

Minister Rambukwella said that regardless of constrains, the government was trying to ensure uninterrupted supply of medicine and it wouldn’t be fair to do at this juncture.

In a statement sent to the media SLCPI asserted: “There is no solution to this dilemma than removing the price control of medicines and implement a fair and equitable pricing mechanism which will link the price of medicines to the dollar, inflation and direct costs such as raw material, fuel and freight charges, which will then make importing and marketing of medicines viable. As difficult as it may sound, the authorities will have to choose between having medicines at a cost and not having medicines at all.”

The SLCPI has already sought the intervention of the courts to establish what the grouping called a transparent pricing mechanism outside government price control.

Recently, Minister Rambukwella, at a meeting also attended by State Minister Dr. Channa Jayasumana called for a report on the requirement of medicines over the next six months. The Health Ministry declared that there was no shortage of drugs whereas SLCPI claimed some drugs were in short supply and the situation could get worse.