Colombo (LNW): Nepalese billionaire Binod Chaudhary paid an official visit to Sri Lanka.
During his visit, Mr. Chaudhary met with the Board of Investment of Sri Lanka (BOI) and held discussions on potential investment opportunities with a key focus on distribution, retail, leisure, financial services and manufacturing.
Owner to a net worth of US $1.5 billion, Chaudhary is the only ‘dollar’ billionaire in Nepal. He is the chairman of the Chaudhary Group and is recognised as the 1,851st richest person in the world, according to Forbes.
Commercial and Industrial Workers’ Union and United Federation of Labour make fresh charges
Claims CBSL seems to function on the personal ‘belief’ of Governor
CBSL continues to bury its head in the sand while the country is robbed by business elites in the export and import sector, saying corporate corruption is ‘their business’
CBSL ignores crucial findings and recommendations of IMF, World Bank, ADB, UNCTAD and OHCHR on illicit financial outflows affecting countries like Sri Lanka
Trade unions demand immediate coordinated effort between CBSL, Commercial Banks and Customs to investigate the issue and repatriate illicitly transferred funds, starting from most recent transactions
In the on-going discourse over trade mis-invoicing, the Commercial and Industrial Workers’ Union and United Federation of Labour President Swasthika Arulingam on behalf of several trade unions and activists, last week made fresh charges.
Central Bank Governor Dr. Nandalal WeerasingheCommercial and Industrial Workers’ Union and United Federation of Labour President Swasthika Arulingam
Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe has disregarded and trivialised the extent of illicit financial flows through trade mis-invoicing in instigating Sri Lanka’s ongoing foreign exchange and fiscal crisis. This was fully apparent at the Parliamentary Committee on Public Finance meeting on 23 January in response to revelations made by us as a collective of Sri Lanka’s prominent trade unions, mass organisations, professionals and economists.
In response to questions raised by Parliamentarians on our statement at the Committee meeting, the CBSL Governor responded, “Obviously people who do under-invoicing or over-invoicing happens basically to evade taxes. If you have taxation, you declare low value and pay low taxes and then they keep money. Probably they keep it out or bring it here. That’s their business. We don’t know.”
The Governor of the country’s Central Bank continued to rationalise or mis-rationalise his admitted ignorance by speaking in a language which is alien to economists, saying, “Other thing is,
I don’t believe this number. Reason is if exporters are doing business here, they can’t keep that amount of money abroad.”
After hearing this, we as citizens are concerned whether the operations of the CBSL are in fact moving forward on the erroneous personal beliefs of the CBSL Governor at this time of deep economic crisis. Since the CBSL Governor ‘does not know’, we as trade unions, civil society organisations, economists and concerned professionals find the need to enlighten him, CBSL Officials and all concerned citizens the extent and dynamics of trade mis-invoicing in accelerating Sri Lanka’s economic collapse. In the following account we will critically address the misleading remarks of CBSL Governor on capital outflows through trade mis-invoicing.
International recognition that trade mis-invoicing is not a myth
The CBSL Governor dismissed the findings of Global Financial Integrity (GFI) report published in December 2021 which pointed out that an estimated $ 40 billion was transferred out of the economy between 2009 and 2018 through fraudulent invoicing by corporates operating in the import-export sector. This figure significantly exceeds Sri Lanka’s foreign debt of $ 36 billion in default since April 2022. The impact of capital outflows of this magnitude on the ongoing economic collapse is self-explanatory. Nevertheless, the CBSL Governor is of the view that corporates would not have sufficient funds to operate within the economy if such a large sum of capital is held outside the country. Consequently, he falsely concludes that the GFI estimates are extreme exaggerations. This amounts to a complete misunderstanding of illicit outflows globally. If not, it indicates that the CBSL’s Governor and officials are colluding with business interests and the political establishment to trivialise and dismiss what appears to be the largest financial crime in Sri Lankan history.
These outflows are surpluses from both legal and illegal operations and therefore are not reutilised in domestic operations and in the interest of expanding industries locally. Economists such as Professor Arun Kumar at Jawaharlal Nehru University, New Delhi, have pointed out that the illegal outflow of capital is used to acquire property abroad or in conspicuous luxury consumption. In other words, illicit financial outflows enable the extravagant enrichment of individuals at the expense of entire countries in the third world.
However illicit financial flows are a common occurrence in countries which have poor financial controls. For instance, the UN referring to the GFI report published in 2014 recognised that illicit financial flows from the African continent through trade mis-invoicing from 1970 to 2009 is a staggering four times the aggregate foreign debt of the region. Furthermore, the UN Conference on Trade and Development (UNCTAD) in September 2020 revealed that an estimated $ 88.6 billion leaves the African continent as illicit capital flight yearly and the aggregate outflows between 2000-2015 ($ 836 billion) is far greater than total foreign borrowings of the continent ($ 770 billion).
The ground-breaking findings of GFI and their collective work with the UN, the World Bank and the IMF advocated including illicit financial flows in the UN’s Sustainable Development Goals in 2015 under goal 16.4 to which Sri Lanka is also a signatory. As early as September 2018, Juan Pablo Bohoslavsky, the UN’s Independent Expert on Foreign Debt and Human Rights for 2014-2020 stated following his visit to Sri Lanka that “no study or official estimation of illicit outflows or inflows has been conducted to date in Sri Lanka”. In his report, he urged the Government “to conduct these studies in order to further curb illicit financial flows in line with the Sustainable Development Goals.”
Further, the Asian Development Bank (ADB) in 2003 emphasised that “inaccurate pricing (“misinvoicing”) of imports or exports [is used] to hide the transfer of funds. When such transactions are extensive, the impact on a country’s entire external sector can be substantial” (ADB, Manual on Countering Money Laundering, 2003). In 2017, the ADB further estimated that trade mis-invoicing accounts for a staggering 83% of all illicit capital outflows from developing countries. The recent statement endorsed by 182 globally renowned economists, academics and activists demanding cancellation of Sri Lanka’s foreign debt also highlighted that capital outflows during the past 15 years is estimated to be greater than Sri Lanka’s total outstanding foreign debt.
There is thus a vast body of research conducted by institutions such as the ADB, IMF, World Bank, OHCHR, UNCTAD and international economists on what happens to national economic development when rampant corruption is allowed through illicit financial flows. It is therefore hugely concerning that our CBSL Governor ‘does not believe’ and does not seem to be aware of the impact illicit financial flows through trade mis-invoicing have had on the Sri Lankan debt crisis. Ultimately, it is a tragedy that Sri Lanka’s foremost authority on economic affairs is completely oblivious to chronic issues engulfing the developing world and the root causes of the fiscal crises we face. Alternatively, if this is not ignorance or misunderstanding, then it points to deliberate collusion by the CBSL’s Governor and his officials with business interests and the political establishment to trivialise and dismiss what are massive financial crimes.
Government enabling of illicit capital flows
We are well aware that the Sri Lankan Government ‘legally’ permitted companies to park income outside the country for years and that this economic hara-kiri was only addressed in October 2021 through a regulation under the Monetary Law Act. It is our interest as citizens to know the full impact of this disastrous blunder. We demand that the CBSL publicise the amount of residual income that the export sector failed to repatriate between the period October 2021 to date, thereby aggravating the economic crisis. We further request institutions such as the CBSL to be responsible and reflect on the implications of the ‘legality’ of enabling local companies to take capital on a developing economy like ours’ in the long run. We are glad to note that the CBSL Governor is aware of other developing countries such as India and Malaysia which have placed restrictions on financial flows as part of a policy framework to accelerate their development with the capital produced in their own countries.
CBSL Governor passing the buck to Customs
In a separate press conference on 26 January, Dr. Nandalal Weerasinghe stated it is the responsibility of the public to inform the Financial Investigative Unit (FIU) of CBSL and Customs Department if they have conclusive evidence of firms involved in fraudulent trade invoicing. It is only then he claimed that the FIU of CBSL and Customs Department can take appropriate legal measures against the perpetrators. He further stated it is the responsibility of Customs Department to address mis-invoicing and not of the CBSL. These assertions indicate the reluctance of CBSL to recognise and investigate illicit outflows.
It is shocking to hear from the Governor that it is the general public who should provide information or advise CBSL on highly technical matters like illicit capital transfers when the CBSL employs the greatest number of Ph.D. holders under one institution in Sri Lanka. Furthermore, it is clearly stated throughout the Monetary Law Act, No. 58 of 1949 that the CBSL bears the responsibility and authority to address issues threatening the economic stability and economic wellbeing of the general public. Hence, the CBSL cannot simply abdicate responsibility by passing the mantle to Customs Department and the general public.
Export profits are only a fraction of capital transfers through trade mis-invoicing
During the Parliamentary Committee on Public Finance meeting, the CBSL Governor further claimed that capital flight through trade mis-invoicing is tantamount to shifting profits to an overseas destination for tax avoidance. However, this is a gross understatement of the gravity of the issue. We have shown in our earlier statements that the over-invoicing of imports transfers out foreign exchange received as foreign borrowing and even workers’ remittances. This compounds the foreign debt crisis, leads to chronic shortages of foreign exchange to finance essential imports and a collapse of living conditions. A study based on 39 African countries illustrates that between 1970 and 2010 approximately 63% to 73% of foreign borrowing exited Africa within a five-year window as a result of capital flight through trade mis-invoicing.
Further, the IMF in its publications over the years shows that the loss of foreign reserves of Central Banks is accelerated by capital flight through trade mis-invoicing while decreasing tax revenue. It diminishes governments’ debt-servicing capacity and worsens the incidence of balance of payments crises. Capital outflows are a diversion of domestic savings out of the economy and deplete domestic resources, compelling governments to absorb more and more foreign debt to finance domestic investments, exacerbating debt unsustainability. Needless to say that these observations are clearly applicable to the course of Sri Lankan economy over the past three decades as we have emphasised repeatedly in earlier statements.
“IMF Budget” for the people, non-IMF concessions for corrupt businessmen
The Government is imposing an ‘IMF budget’ on Sri Lanka, making life unbearable to ordinary Sri Lankans, particularly working and poor people. We hope that the CBSL Governor is able to see the ground from the tall towers he occupies and observe how people are not eating any longer because they can’t afford food; have restricted even essential travel for medical and education purposes; live in the dark because electricity has become a luxury; and have children not going to school because of hunger and costs. His ‘belief’ is costing the lives of millions in Sri Lanka.
Hence, we as trade unions, civil society organisations, economists and concerned professionals ask the obvious question – Why has the Government failed to move an inch on the observations and recommendations of institutions such as the IMF on illicit financial outflows? Why is the Government burying its head in sand while their friends, the business elite, loot money out of this country and deny our country of much needed foreign exchange?
The CBSL should therefore immediately implement a coordinated mechanism integrating itself with commercial banks and the Customs Department to investigate the issue and repatriate illicitly transferred, funds starting from most recent transactions. Instead of speculating on the credibility of GFI and the extent of trade mis-invoicing which are already recognised by international organisations like the UN, World Bank, IMF and ADB, the CBSL should collaborate with GFI and UNCTAD to further clarify the findings on Sri Lanka that emerged from 2021GFI report.
In the absence of no such an initiative being even proposed by the CBSL Governor, we can only conclude that the CBSL is complying with the criminal corporate-political corruption that has driven the economy to the ground and ordinary Sri Lankans into destitution.
On behalf of: Centre for Community Empowerment, Ceylon Bank Employees’ Union, Ceylon Federation of Labour, Ceylon Teachers’ Union, Dabindu Union, Engineers’ Services Professional Association, Federation of Media Workers’ Trade Union, Institute for People Engagement and Networking, Mass Movement for Social Justice, Movement for the Defence of Democratic Rights, Movement for Land and Agricultural Reform, Movement for Plantation Peoples’ Land Rights, National Collaboration Development Foundation, National Trade Protection Council, North South Solidarity Group, Professionals’ Centre for People, Protect Union, Satahan Media, Rural Development Foundation, Social Institute for Development of Plantation Sector, Sri Lanka All Telecommunication Employees’ Union, Stand Up Workers’ Union, Suriya Shakthi Foundation Nuwara Eliya, Textiles Garments and Clothing Workers’ Union, United Fishermen’s and Fish Workers’ Congress, Upcountry Civil Society Collective, Uva
Shakthi Foundation, Young Lawyers’ Association
Sugath Kulathunga – Former Senior Advisor at International Trade Centre (WTO/UNCTAD), Former Director General of Sri Lanka Export Development Board and Former Additional Secretary to Ministry of Trade, Prof. (Dr.) M.P.S. Magamage – Former Chairman of National Livestock Development Board, Dr. Kalpa Rajapaksha – Senior Lecturer in Economics, Amali Wedagedara – Political Economist and PhD Student, Dhanusha Pathirana – Economist
Colombo (LNW): The Attorney General has filed a revision petition at the Colombo High Court demanding the nullification of the order by Colombo Chief Magistrate Prasanna Alwis dropping the charges against Convener of the Inter-University Students’ Federation (IUSF) Wasantha Mudalige under the Prevention of Terrorism Act (PTA), in what he described as the Colombo Chief Magistrate being not vested with the jurisdiction to do so.
In his revision petition, the AG argues that the Colombo Chief Magistrate has dropped the charges against Mudalige, who was arrested under the PTA and detained pending his instructions, without taking the objections by the lawyers appearing for the AG’s Office into account, thereby demanding the nullification of the order to continue the trial against the suspect as before.
Colombo (LNW): Showers or thundershowers may occur at a few places in Rathnapura, Kalutara, Galle and Matara districts during the afternoon or night, but mainly fair weather will prevail elsewhere over the island, the Department of Meteorology said in a statement today (13).
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at a few places in the sea areas off the coast extending from Colombo to Galle in the evening or night.
Winds:
Winds will be north-easterly and wind speed will be (20-30) kmph. Wind speed may increase up to (40-45) kmph at times in the sea areas off the coast extending from Mannar to Colombo via Puttalam and in sea areas off the coast extending from Galle to Pottuvil via Hambantota.
State of Sea:
The sea areas off the coast extending from Matara to Pottuvil via Hambantota will be fairly rough at times. The other sea areas around the Island may be slight to moderate. Near shore sea areas off the coast extending from Mannar to Galle via Puttalam and Colombo may experience rough seas and surges due to increased wave period.
Jaffna (LNW): President Ranil Wickremesinghe instructed the government officials to take the necessary measures to purchase a kilo of paddy at a guaranteed price of Rs. 100.
The President further said that the Northern Province and Jaffna District will be developed as a province capable of supplying food to Sri Lanka.
These remarks were revealed by President Ranil Wickremesinghe this morning (12) while attending the Northern Province harvest ceremony at Paranthan in Jaffna.
The President also inquired about the problems related to paddy cultivation from the farmers of the Paranthan area and assured that immediate solutions will be provided to those problems.
President Ranil Wickremesinghe further said:
The government promptly provided the required fertilizers to the farmers. Therefore, we believe that there will be a surplus of paddy harvest in the ‘Maha Season’. Accordingly, arrangements are being made for the government to purchase a kilo of paddy at a guaranteed price of Rs. 100.
Many people are currently experiencing financial difficulties. Even if yields increase, there is a segment of the population that lacks the financial means to purchase rice. Therefore, we are implementing a program to provide 10 kilos of rice free of charge to 2 million families during March and April. Then by the Sinhala New Year season, they would have received 20 kilos of rice.
Currently, approximately 03 metric tons of paddy is received per hectare. We require a minimum of six metric tons of rice per hectare. If possible, we hope to increase it to 07 metric tons. The government is working to provide the necessary facilities to achieve that target. More methods of purchasing and storing paddy will be developed in the future. We intend to build small and medium-sized rice mills. We will be able to succeed in those activities in the next two years. We have planned to provide the necessary water facilities for this area. We are working to restore the Punarin Lake. Iranamadu Lake has now been prepared.
We are working to transform the Jaffna district and the Northern Province into a province that is capable of producing enough food to feed the country once more. In addition to this, we hope to take steps to start the production of animal feed.
Minister of Fisheries Douglas Devananda, President’s Senior Adviser on National Security and Chief of Staff Sagala Ratnayake, President’s Secretary Saman Ekanayake, former Member of Parliament Vijayakala Maheswaran, Chief of Defence Staff General Shavendra Silva, Inspector General of Police C D Wickramaratne and Northern Province Government officials participated in this event.
Following that, the President visited the Pannam Kandi field, Kilinochchi and discussed the problems of the farmers there.
A large number of local people had gathered around to see the President and the President made it a point to engage in friendly discussion with those gathered and especially focused on the children and inquired about their educational activities.
Lanka Coal Company says it has secured only 12 coal shipments out of 30 scheduled for Oct’22-Apr’23 unloading season, so far: confirms that 30% part payments have been made for 13th to 17th shipments: also says 13th shipment already berthed in Puttalam while 14th is near, but balance 70% not paid yet due to lack of funds: meanwhile Central Bank says its Forex reserves have increased.
Ceylon Chamber of Commerce asks China “to work with the IMF in order for Sri Lanka to receive its much needed funding”: says Govt has carried out an initial set of reforms and that the Chamber expects more reforms after IMF Board approval: present CCC office bearers have been vehemently demanding higher Govt taxes, IMF programme and an ISB Default.
Central Bank settles about USD193mn (Rs.70.3bn) worth USD denominated SLDBs held by commercial banks and small-holders in Rupees through Treasury Bonds and cash: stock of SLDBs reduced to Rs 273bn from Rs.343bn.
Health Ministry instructs Govt Hospitals to postpone non-essential & non-urgent surgeries at Govt hospitals: only “essential & urgent surgeries” to be performed.
President Ranil Wickremesinghe instructs Govt officials to purchase paddy at a guaranteed price of Rs.100 per kg: also says the Northern Province and Jaffna District will be developed as areas capable of supplying food to Sri Lanka.
Mahanayakes of Malwatte & Asgiriya Chapters and Diyawadana Nilame of the Dalada Maligawa Pradeep Nilanga Dela request IGP to prevent slanderous propaganda in some social media defaming the Dalada Maligawa and the Mahanayake Theras.
Mass Media Minister Dr Bandula Gunawardena says Opposition Leader Sajith Premadasa has defamed the IMF by saying “a SJB Govt is not bound to implement any agreement with the IMF”.
State Minister of Finance Shehan Semasinghe claims a few individuals including PUC Chairman Janaka Ratnayake are contributing to the delay in Sri Lanka obtaining the IMF Board approval for the USD 2.9 bn EFF: also says he doesn’t know their reason for doing so.
Media Spokesman of the GMOA Dr Chamil Wijesinghe says stocks of over 140 essential drugs used for the treatment of patients have been exhausted: asserts the maintenance of health services of the entire hospital system is therefore a severe challenge.
Dept of Motor Traffic Commissioner General Nishantha Anuruddha Weerasinghe says over 700,000 vehicles identified to be in the category and brand of vehicles with faulty airbags which have been recalled by the manufacturers, are currently in operation in Sri Lanka.
The iconic Jaffna Cultural Center (JCC), which was built with grant assistance of Government of India (GOI), was dedicated to the people on 11 February 2023 at a colourful event in the gracious presence of President of Sri Lanka H.E Ranil Wickremesinghe, Minister of State for Fisheries, Animal Husbandry & Dairying and Information & Broadcasting, GOI Dr. L. Murugan, High Commissioner of India Gopal Baglay, Hon. Douglas Devananda, Minister for Fisheries, Hon. Vidura Wickramanayake, Minister for Buddhasasana, Religious and Cultural Affairs, Hon. Kadar Masthan, Minister of State for Rural Economy, several Parliamentarians and dignitaries from various walks of life.
2. Describing JCC as a gift from Prime Minister Narendra Modi, President H.E Ranil Wickremesinghe thanked him and GOI for the Center. He thanked India for the support extended to Sri Lanka during the economic challenges. Highlighting cultural similarities between the two countries, he noted that India and Sri Lanka were the two sides of the same coin.
3. Speaking on the occasion, Minister of State Dr. L Murugan underlined that India’s partnership with Sri Lanka was guided by Prime Minister Narendra Modi’s ‘Neighbourhood First’ policy. He also announced a special financial assistance scheme to 100 students from economically weaker families in University of Jaffna. He also highlighted that GOI have implemented numerous people-centric projects cutting across sectors in Northern Province.
4. H.E Ranil Wickremesinghe and Hon. Vidura Wickramanayake handed over a special token of gratitude to Minister Dr. L Murugan for JCC. The wide array of cultural performances showcased the richness and diversity of Sri Lanka’s culture.
5. The state-of-the-art facility consists of multiple facilities such as a museum of two floors; an advanced theatre-style auditorium for more than 600 people; a 11-storeyed learning tower; a public square which could also act as an amphitheater; exhibition galleries (Air conditioned), Open exhibition and a 100-seat Conference facility, among others .
6. Foundation stone for JCC was laid by Prime Minister Narendra Modi in May 2015 during the first – ever visit by an Indian Prime Minister to Jaffna. Following the construction of JCC, the iconic facility was virtually inaugurated during the visit of External Affairs Minister Dr. S. Jaishankar to Colombo in March 2022.
7. JCC is an outstanding example of GOI’s ongoing commitment to the people of Sri Lanka including in the Northern Province. GOI’s development partnership with Sri Lanka which touch upon all aspects of daily lives such as infrastructure development, education, health, housing, livelihood development etc currently stands at USD 5 billion.
A meeting between the Tamil Nadu president of the Bharatiya Janata Party K. Annamalai, who is traveling to Sri Lanka, and the executive committee of the Ceylon Workers’ Congress was held yesterday (11.02.2023) at the headquarters of CWC in Soumya Bhawan.
Secretary General of Ceylon Workers’ Congress and Minister Jeevan Thondaman, President of Ceylon Workers’ Congress Senthil Thondaman, Vice President Maruthapandi Rameswaran MP, Vice Presidents Ganapathi Kanagaraj, Anushiya Sivaraja, National Organizer AP Sakthivel, Vice Presidents, Divisional Council Presidents of Ceylon Workers’ Congress, and Party dignitaries participated in this meeting.
Also, a special meeting between the members of the Sri Lankan Indian Community Council and K. Annamalai was held at the Ministry of Water Supply and Estate Infrastructure Development under the leadership of Jeevan Thondaman.
In this meeting, Tamil Nadu State President of the Bharatiya Janata Party Annamalai stated Minister Jeevan Thondaman that he would act as a bridge between the people of the central province and the Central Government of India to provide financial assistance in all possible ways and to speed up the measures to implement the 10000 houses project in the central province.
Joint Press Release by the Embassy of Sri Lanka, Washington D.C., and Heart to Heart International, United States
Under the guidance of His Excellency Ambassador Mahinda Samarasinghe, Heart to Heart International has now obtained all necessary government approvals for the fourth in-kind donation of urgent medical aid, worth an approximate of $6,987,269.78 USD (i.e., LKR 2.6 billion), to the people of Sri Lanka. In collaboration with the Ministry of Health in Sri Lanka and this Embassy, the fourth donation is scheduled to arrive in Colombo Sri Lanka, via air by early next week. The latest donation includes specialized medicines such as: Everolinus, an immunosuppressant used for organ transplants; and Sunitinib Malate, used for cancer treatments.
The Sri Lankan Embassy in Washington, D.C. is immensely thankful to Heart to Heart International for the generous donations made to the people of Sri Lanka. Heart to Heart International has borne all expenses, and the donation will be received by the Ministry of Health for immediate distribution at no cost to the people of Sri Lanka.
Headquartered in Lenexa, Kansas, Heart to Heart International (HHI) is a global humanitarian organization focused on improving access to health. Since its inception in 1992, HHI has delivered medical aid and supplies worth $2.5 billion to more than 130 countries, including within the United States. HHI responds to natural disasters both domestically and internationally by supplying medical relief and mobilizing volunteers. The organization is a 4-star Charity Navigator charity, a BBB Accredited charity and is on the “Philanthropy 400.”
Colombo (LNW): The Government Medical Officers’ Association (GMOA) says that the stocks of more than 140 types of essential drugs used for the treatment of patients have been exhausted.
Dr. Chamil Wijesinghe, the Media Spokesman of the GMOA, pointed out that the attention of the Ministry of Health should be directed in this regard.
He also said that in view of this situation, the maintenance of health services of the entire hospital system, starting from the National Hospital to the rural hospitals, has confronted a severe challenge.
Meanwhile, President of the Health Professionals’ Association Mr. Ravi Kumudesh stressed that 80% of the drugs brought to Sri Lanka under the Indian credit assistance system have not been registered.
He alleges that the National Medicines Regulatory Authority (NMRA) is responsible for the issue.
Sri Lanka is expecting to ease a medicine shortage by next month with more supplies coming in from orders placed through an Indian credit line, as well as funds from the Asian Infrastructure Investment Bank and World Bank, health officials said.
Sri Lanka’s medical supplies were disrupted in 2022 following the worst currency crises in the history of the island’s intermediate regime central bank as the country lost the ability to pay regular suppliers and private importers also could not open letters of credit or pay for earlier imports.
Sri Lanka’s State Pharmaceuticals Corporation is getting more supplies including 14 vital medicines that were short a few months back.
“So far we have purchased 267 medicine items as of February 01,” Dinusha Dassanayake, the General Manager of SPCsaid.
“We have so far received 303 medicine consignments including 112 surgical supply consignments and we have purchased 267 medicine items as of February 01,”
India has stepped in last year with the credit line, but ordering and getting medicines takes time.“Of the 200 million US dollar credit line we received from India, we got approval for 96.7 million US dollars,” Dassanayake said.disclosed.
“And we have placed orders for 862 pharmaceuticals and 1,596 surgical items“We hope to receive it by next April or May.”
The shortage of essential medicine lists has dropped to 155 from 169 as the medicines started coming in to the country, SPC Chairman, Sarath Liyanage said.
He said funds are also being allocated from Asian Infrastructure Investment Bank, the World Bank as well as other financial institutions.
Also, the country has adequate amount of drugs or the next six months, and measures have been taken to secure more stocks, a health official from the Ministry of Health said.
Before crisis Sri Lanka usually had several months of supply of each stock, which were run down as money printing created forex shortages.
Drugs that are short in one month are not the same that are short the next month. But supplies of some drugs have now been built up for six months, a Health Ministry official said.
“Last month we didn’t receive an allocated amount of drugs but now we are in a process of receiving the drugs,” the official said.
Meanwhile, the Cabinet Spokesman Minster Bandula Gunawardana said the current drug shortage is partially due to a delay of the medicines regulator.
“When the harbour release medicine consignments, they always have to get the approval of the National Medicines Regulatory Authority,” Gunawardana said.
“The regulations and methods that they practise throughout this period will not be changed due to a medicine shortage.”
