Govt. to procure medical supplies and drugs from local manufacturers

The Cabinet of Ministers has granted approval to enter into buy back agreements for the procurement of locally produced medicines and medical supplies from identified institutions for a period of one year.

During the Cabinet meeting held on 29 November 2013, approval had been given for the purchase of locally produced drugs under the Buy Back Agreement procedure in order to encourage local drug manufacturers by providing priority to the activities of the State Pharmaceutical Corporation of Sri Lanka. 

Furthermore, on 02 October 2018, the Cabinet of Ministers approved to grant buy back agreements for local pharmaceutical manufacturing companies in contract with the Sri Lanka State Pharmaceutical Manufacturing Corporation for a period of 15 years, to purchase those medicines based on the priority given to the State Pharmaceutical Manufacturing Corporation, and to implement the agreements for supply of medicines between the local pharmaceutical manufacturers with the Ministry of Health for up to 10 years.

The Cabinet Office stated that accordingly, a pricing committee has also been appointed to decide the prices of the medicines supplied. According to the method of purchasing the drugs, it currently covers about 20% of the country’s medical supply needs, and it has been recognized that there is a possibility of increasing the amount up to 40%.

Thus, 49 local pharmaceutical manufacturing companies with the capacity to supply 454 medical supplies including drugs have been identified by the Ministry of Health’s Medical Supplies Division, it added.

Accordingly, the Cabinet of Ministers has approved the proposal furnished by Prime Minister Dr. Harini Amarasuriya as the Minister of Health to enter into buy back agreements for a period of 01 year for the procurement of locally produced medicines and medical supplies from the identified local institutions for a period of one year with no prejudice to the pharmaceutical manufacturing process of the Sri Lanka State Pharmaceutical Manufacturing Corporation as well as to the local pharmaceutical manufacturing establishments that have already been sub-contracted.