Navigating the Pharma Landscape in Sri Lanka: A Personal Reflection – Dr Sayuru Samarasundera

Taking paracetamol when you are having a headache or bandaging your child’s scrap when the child got hurt while playing does not feel like a big deal. However, imagine you have to pay a premium price for a paracetamol pill or a cotton bandage roll and are financially unable to afford them. What would you do? I believe that we take many things for granted when those things are available freely or for an affordable price. And that would apply to manufacturing essential medicinal drugs in Sri Lanka as well.

The State Pharmaceuticals Manufacturing Corporation, or SPMC, was established to cater to the needs of a state-sector corporation that engaged in manufacturing pharmaceuticals in Sri Lanka. Established in June 1987, under the Act no 49 of 1957, through a grant aid from the Japanese Government through JICA, SPMC hasn’t wavered from its commitment to manufacturing high-quality and effective drugs at an economical and affordable cost.

The State Pharmaceutical Manufacturing Corporation (SPMC) stands tall with a distinguished history of visionary initiatives and a meticulously navigated trajectory. The origins of SPMC can be traced back to the Bibile-Wickramasinghe Report, prepared by the late Professor Senaka Bibile and Dr S A Wickramasinghe. This report was commissioned by then Prime Minister Sirimavo Bandaranayake, tasking the duo with the establishment of a government-owned and operated essential drug manufacturing entity in Sri Lanka.

In 1971, the report was presented to Prime Minister Sirimavo Bandaranayake, marking the commencement of the government’s initial phase: the importation of vital medicinal drugs. Subsequently, the second phase unfolded, focusing on the localised manufacturing of selected essential drugs.

The pivotal turning point came in 1985 when the Ministry of Health proposed the creation of a Formulation Centre for Essential Drugs. This proposal gained approval and support from the Japan International Corporation Agency (JICA), marking the realisation of the founders’ aspirations and the culmination of dedicated efforts.

The pharmaceutical industry in Sri Lanka, in general, plays a crucial role in ensuring the health and well-being of the citizens. With a growing population and increasing healthcare needs, the industry has had to witness significant developments in recent years. Among the key players shaping this landscape is the State Pharmaceutical Manufacturing Corporation. And I can be satisfied and humbly proud of where the SPMC is today as the former chairman.

The pharmaceutical sector in Sri Lanka has experienced remarkable growth in recent years, driven by factors such as rising healthcare awareness, government initiatives to improve healthcare infrastructure, and, of course, strategic planning and implementation within the state pharma sector. As a result of constant quality control and implementation of the highest international level standards as the benchmark in the industry, mainly by SPMC, Sri Lanka’s pharmaceutical market is known for its adherence to international quality standards, ensuring the safety and efficacy of medicines.

During my tenure in 2015 at SPMC, I was privileged to lead a team of dedicated professionals who shared a common vision of advancing healthcare in Sri Lanka. Together, we initiated several strategic measures to bolster SPMC’s position in the industry. Research and development became a focal point, driving us to explore new horizons in pharmaceutical sciences and technology. Our commitment to excellence demands that we continually enhance our manufacturing processes and ensure that our products meet the highest international standards. The most important decision I took was to increase the production and variety of essential medicinal drugs manufactured by the SPMC, which has proved to be a crucial decision for the Sri Lankan pharma sector as well as for the overall Sri Lankan healthcare sector.

Our main aim back then in 2015 was to provide an uninterrupted supply of pharmaceuticals required by the Medical Supplies Division (MSD) of the Ministry of Health, State Pharmaceutical Corporations (SPC), Pharmacies, and Medical Professionals. To facilitate this process, we expanded the building capacity of SPMC for production, storing area, and administration unit. The modernisation of the laboratory area also ensured the supply of high-quality drugs to those in need at affordable prices. This expansion is supposed to support us in improving production, increasing sales revenue, widening the product range, creating new employment opportunities, enhancing technical know-how, and creating a corporate image of SPMC, which is very well served to that goal. Numbers will support to prove that claim.

In conclusion, the pharmaceutical industry in Sri Lanka is a dynamic and evolving sector that plays a pivotal role in the well-being of our nation. International pharma is a colossal industry and one that is rapidly growing day by day. Accordingly, we need to keep up with that development and the competition and think of how to serve the well-being of our own people in Sri Lanka. And we are taking up that challenge successfully, I believe, with the seeds of ideas and visions our pioneers planted in this rich soil.

Having said that, I am humbly proud that SPMC, under my leadership, has been at the forefront of this journey, contributing to the accessibility and affordability of high-quality medicines. The challenges we faced have only fueled our determination to excel. As the torch passes to new leaders, I am confident that the pharmaceutical industry in Sri Lanka will continue to flourish, ensuring a brighter and healthier tomorrow for all.

Dr Sayuru Samarasundera

MD, Emeritus Professor (University of Moscow)

1. Trade Minister Nalin Fernando pledges a staggering 75% reduction in the cost of living by the end of the 1st Quarter of 2024: says this outcome will be achieved via the Govt’s reforms, particularly in the area of tax: admonishes those who argue against levying taxes: asserts such statements are counterproductive to economic growth.
2. President makes all services related to the provision of electricity, petroleum products, provision of fuel or supply, and services at ports and airports as “Essential Services”: Energy Minister Kanchana Wijesekara says instructions given to the CEB management to take disciplinary action against any employee who acts in violation of CEB management guidelines.
3. Inland Revenue Dept says everyone above 18 years who fails to obtain a Taxpayer Identification Number would be liable to a fine of Rs.50,000: also says anyone earning an income of more than Rs.1,200,000 a year, must register for Income Tax.
4. SJB MP and it’s leading “Economic Guru” Dr Harsha de Silva says his Party’s economic agenda will offer some respite to people, whilst staying close to the deep reforms needed to revive the SL economy: acknowledges however that the increase in VAT will impose further burdens on the suffering public: analysts point out that Silva has been an ardent advocate of higher taxes, higher interest rates, tight IMF programme, flexible Rupee and Debt Re-structuring.
5. Sepalika Chandrasekara appointed as Commissioner General of the Inland Revenue Dept: she has previously served as the Deputy Commissioner General – Tax Administration (Medium Corporate, Corporate Small Entities and Non-Corporate Sector, Regional Offices and Risk Management).
6. President Ranil Wickremasinghe asserts that despite challenges, the country’s economy can experience “swift strengthening by persisting on the current trajectory”.
7. Fort Magistrate’s Court grants bail to Pastor Jerome Fernando: however, he has been barred from travelling abroad.
8. Foreign Minister Ali Sabry seeks intervention of the Deputy PM and Minister of Foreign Affairs of Myanmar U Than Swe for the release of 56 SL nationals who are being illegally held in Myawaddy area as victims of human trafficking for cybercrimes.
9. Chairman of Selectors of SL Cricket announces that Dhananjaya de Silva has been appointed Captain and Kusal Mendis as Vice-Captain of the Test format: SL Cricket also announces the 17-member squad for the ODI series with Zimbabwe, with Kusal Mendis as Captain and Charith Asalanka as Vice-Captain.
10. SL Women’s Cricket Captain Chamari Athapaththu among those shortlisted for the ICC Women’s T20I Cricketer of the Year 2023 Award.

January 04, Colombo (LNW): Minister Nalin Fernando’s recent announcements hold a promising outlook for Sri Lanka’s economic landscape. He asserts a substantial 75% reduction in the cost of living by the first quarter, buoyed by the country’s positive economic growth at the onset of 2024.

In a press conference themed “Collective Path to a Stable Country,” the Minister highlighted plans to fortify consumer rights through a new Consumer Authority initiative. Addressing concerns about the impact of India’s halt on big onion exports, he assured a resolution within two weeks when India is expected to ease its restrictions.

Emphasizing the significance of taxes as a source of government income for national investments, Minister Fernando underscored the importance of citizen support. Despite modest taxation levels in Sri Lanka, he acknowledged unwarranted price hikes driven by improper publicity surrounding tax amendments.

The Minister unveiled ambitious plans for Lanka Sathosa, aiming to expand its outlet network significantly and increase the company’s income to nearly Rs. 70 billion by year-end. Amid economic challenges, the goal is to achieve an operating profit of Rs. 1.5 billion and secure a net profit of Rs. 500 million.

Anticipating a new program for the Consumer Authority in 2024, Minister Fernando outlined plans to fully computerize the Department of Measurement Units, Standards, and Services within the first four months to better meet consumer needs.

January 04, Colombo (LNW): The Ministry of Ports, Shipping, and Aviation announced the impending opening of bids next month concerning the restructuring of SriLankan Airlines. The Ministry noted that entities submitting bids had requested an extension, prompting the delayed bid submission.

The restructuring of SriLankan Airlines had received approval from the Cabinet of Ministers, marking a significant step in the airline’s evolution.

Further discussions regarding this restructuring were held between the Ministry of Ports, Shipping, and Aviation and the World Bank. Following the proposal’s direction to the Treasury, engagements with the World Bank aimed to explore and solidify strategies in this regard.

January 04, Colombo (LNW): A few showers will occur in Eastern, Central and Uva provinces.

Showers or thundershowers will occur at several places in the Western, Sabaragamuwa and Southern provinces and in Kurunegala district after 2.00 p.m.

Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces during the morning.

The public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

January 03, Colombo (LNW): In a session with the Sectoral Overseeing Committee on National Security, Justice, Prisons, and Constitutional Reforms Minister Dr. Wijeyedasa Rajapakshe emphasized the pivotal role of the National Hydrology Act in enabling Sri Lanka to harness revenue from ships traversing its waters in dollars.

Dr. Rajapakshe highlighted that although in existence since 1983, the National Hydrology Act has remained dormant. This legislation grants essential legal authority to develop and maintain Electronic Navigation Charts crucial for maritime navigation.

During the recent meeting chaired by MP Dr. Sarath Weerasekera, officials elucidated that the Act’s primary objective is to register hydrological surveyors and nautical cartographers while establishing the National Hydrographic Office.

A significant revelation came from officials who disclosed that the Royal Navy of England has generated three maps for shipping, encompassing the South Seas, using data partly provided by Sri Lanka. However, officials clarified that Sri Lanka, through this Act, holds the rights to conduct exploration, gather data, and craft maps for the pertinent sea regions. This updated information can also be used to revise existing maps, subsequently enabling the nation to capitalize on maritime routes for generating income.

January 03, Colombo (LNW): Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardena announced the official endorsement to proceed with the proposed Sri Lanka-Thailand Free Trade Agreement during the weekly cabinet media briefing held at the Government Information Department.

The ninth round of negotiations for this agreement took place in Colombo from December 18 to December 20, 2023. Following these discussions, key aspects have been finalized, with legal and institutional matters forwarded to working groups for comprehensive legal scrutiny.

Notably, both parties reached an agreement during the 9th negotiation round to incorporate provisions for the simultaneous elimination of 50% of cumulative duties applicable to the Harmonized System classification codes listed in the Sensitive List of the Tariff Liberalization Programme. This elimination process is set to commence at the start of the 16th year from the Agreement’s entry into force.

Furthermore, an accord has been reached to truncate the duration of the Tariff Liberalization Programme from 18 years to 16 years based on the discussions held during this negotiation round. This move signifies a mutual commitment to expediting the trade liberalization process between Sri Lanka and Thailand, demonstrating a shared dedication to fostering increased economic collaboration and market access.

January 03, Colombo (LNW): In a significant move to align with the United Nations Framework Convention on Climate Change, Sri Lanka has committed to enhancing its forest cover to 32% of the total land area by 2030. Additionally, the nation aims to bolster the quantity of carbon absorbed by forests by 7% from existing levels within the same timeframe.

To achieve these targets, proactive measures have been initiated, encompassing extensive forest plantation, rehabilitation of degraded forests, and expanding forest cover on government and private lands situated away from forested areas. Although the benefits of this reforestation endeavor are national in scope, active involvement from diverse stakeholders is being encouraged. As an incentive, it has been acknowledged as appropriate to distribute the benefits derived from reforestation among the participating entities.

Presently, there is a lack of legal provisions enabling the allocation of produce like fruits, leaves, flowers, timber, and resin to individuals engaged in reforestation efforts in public areas. Moreover, recognizing the potential in establishing a National Reforestation Fund, aimed at securing contributions from private sector entities, non-governmental organizations, and international bodies, to ensure ample funding for highly productive reforestation initiatives.

Responding to these critical needs, the Minister of Wildlife and Forest Resources Conservation proposed the introduction of a comprehensive legislative framework titled the “Reforestation and Forest Cover Act.” This act encompasses provisions that cater to the aforementioned actions and strategies required for successful reforestation efforts. The Cabinet has granted its approval for the proposal, marking a crucial step toward effective reforestation management in Sri Lanka.