By: Staff Writer
January 18, Colombo (LNW): The State Pharmaceuticals Corporation of Sri Lanka (SPC) recorded one of its strongest financial performances in decades during 2025, offering a rare example of fiscal discipline and operational recovery within a major state-owned enterprise. According to its annual performance review, the Corporation significantly strengthened its contribution to government revenue while expanding access to affordable medicines across the country.
SPC’s payments to the Treasury through income tax and levies surged by an extraordinary 173 percent year-on-year, reaching Rs. 1.1 billion. This growth was accompanied by a 26 percent rise in income generated through its Own Revenue Stream (ORS), alongside a 9 percent increase in earnings from the State Osusala pharmacy network. Together, these indicators point to improved financial governance and tighter cost controls.
One of the most notable achievements in 2025 was SPC’s full utilisation of its annual budget allocation for supplying medicines to the Department of Health Services. For the first time in its 53-year history, the entire allocation was absorbed through formal indent orders, signalling a major improvement in planning, procurement efficiency, and coordination with the public health system.
Operational performance also showed marked gains. ORS production increased by 36 percent compared to the previous year, reflecting better asset utilisation and process optimisation. Meanwhile, the State Osusala network expanded with five new outlets established in Kiribathgoda, Narahenpita, Kegalle, Kalmunai, and Batticaloa. Revenue growth was further supported by internal efficiency measures that enabled several loss-making pharmacies to return to profitability.
Quality assurance remained a key focus area. SPC initiated steps toward ISO 17025 accreditation for its laboratories, a move aimed at strengthening drug testing and regulatory compliance. All medicines distributed through Osusala outlets continue to undergo a four-tier testing process before reaching consumers, reinforcing public trust in the safety and efficacy of state-supplied pharmaceuticals.
Health Minister Dr. Nalinda Jayatissa, following multiple inspections, publicly acknowledged SPC’s progress while highlighting the challenges posed by a global pharmaceutical market driven by aggressive profit-seeking and unethical practices. He reaffirmed government backing for SPC staff and emphasized the importance of protecting institutional integrity.
SPC’s leadership has indicated that the focus in 2026 will be on consolidating these gains, expanding operational reach, and reinforcing its role as a stabilising force in Sri Lanka’s public healthcare supply chain.
