Pharma industry seeks 18% price increase

Talks likely between NMRA and SLCPI

By Shamindra Ferdinando

The Sri Lanka Chamber of Pharmaceutical Industry (SLCPI) has reiterated its call for a price revision in the wake of further deterioration of the dollar supply. About 85% of pharmaceutical products are imported.

Minister Rambukwella turned down SLCPI request during talks with a delegation from the outfit in January this year. However, the SLCPI had taken up the issue again close on the heels of the adjustment of the price of paracetamol, a spokesperson for the grouping told The Island.

“We expect an urgent upward price adjustment of 18% on all price controlled products in terms of a written request made to the Chairman of the pricing committee of the National Medicines Regulatory Authority (NMRA) on Sept.01, 2021,” the spokesperson said.

“Paracetamol is widely used to treat symptoms of the Omicron variant and Dengue, both of which are growing health concerns in the country. An increase in the controlled price makes it possible for importers and local manufacturers to ensure that the drugs do not go out of stock in pharmacies,” the spokesperson said. It will now cost Rs. 2.30 per tablet, up from Rs. 1.71 – a 35% increase.

The Island yesterday (09) sought the NMRA’s response to SLCPI’s written request. A senior spokesperson for NMRA told The Island that though the request made by SLCPI had been turned down earlier, they were prepared to discuss the issue at hand now . The depreciation of the Rupee has compelled NMRA to review the pricing formula.

The yahapalana government imposed price controls on all essential drugs in October 2016.

The SLCPI, in a recent statement explained the deepening forex crisis. “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 warned that unless necessary price adjustments were done immediately lifesaving drugs wouldn’t be available in the market.

SLCPI represents about 60 enterprises which accounted for more than 80% of the private pharmaceutical industry, spanning manufacturers, importers, distributors and retailers.

Medicine remained the only items on price control after the current dispensation abolished price controls on an entire range of local and imported essential food and other requirements, including petroleum products.

Sources said that since the SLCPI’s request made in Sept 2021, the situation has taken a drastic turn with the growing shortage of almost all imported items due to cash flow problems.

The Island learns that a meeting between the NMRA and SLCPI was likely to discuss ways and means of addressing the issues at hand. Contrary to various claims, reports and speculation Sri Lanka largely depend on imports therefore revision of pricing formula couldn’t be delayed further.

Sources pointed out that the Central Bank devalued Rupee on Monday (7) setting an exchange rate limit of Rs 230 per USD as the situation deteriorated further against the backdrop of volatile crude oil market caused by the Russian invasion of Ukraine.