The Cabinet of Ministers has approved a proposal to enter into buyback agreements with local pharmaceutical companies to encourage domestic medicine production.
The initial approval for the initiative was granted on Nov. 29, 2013, to support locally produced medicines through the State Pharmaceuticals Corporation of Sri Lanka (SPC).
Further approval was given on Oct. 2, 2018, enabling agreements between the SPC, the Ministry of Health, and local pharmaceutical manufacturers for a 15-year period.
The 2018 agreement prioritized the purchase of medicines from local producers for up to 10 years.
A pricing committee was also appointed to oversee the cost of medicines supplied under these agreements.
This strategy currently meets 20% of the national pharmaceutical demand, with a target to increase coverage to 40%, the government said.
The Ministry of Health’s Medical Supplies Division has identified 49 local manufacturers capable of supplying 454 essential drugs.
Based on this assessment, the Cabinet approved a proposal from the Prime Minister, acting as Minister of Health, to finalize one-year agreements with these companies. (Newswire)