PC Pharma Limited - Colombo Stock Exchange

3.4
Pharmaceutical Industry in Sri Lanka
Sri Lanka National Pharmaceutical Policy
Sri Lanka National Pharmaceutical Policy was established in 1970 following a report
submitted by Dr. S. A. Wickramasinghe and Prof. Senaka Bibile with the aim of ensuring
that people get good quality pharmaceuticals at the lowest possible prices.
Under the integrated National Pharmaceutical Policy a central procuring agency of
pharmaceuticals, calling for worldwide bulk tenders were established. The pharmaceuticals
purchased were limited to the approved list of the national formulary. The public health
sector was compelled to obtain all their requirements from the central buying agency. This
policy was watered down by the subsequent governments by permitting the private sector
importation of multiple brands.
Introduction of the National Pharmaceutical Policy led to the establishment of the State
Pharmaceutical Corporation in 1971 this resulted in the dominance of the multinational
corporations on the drug trade being successfully broken as they were made to compete
with each other and with generic drug producers, enabling the people to obtain
pharmaceuticals much cheaper. Branded pharmaceuticals were replaced to a certain
extent by generic pharmaceuticals in the prescription and sale of medicines. According to
the Chairman of the Sri Lanka Chamber of Pharmaceutical Industry approximately 10% of
the country demand for medicine is being met by local manufacturers with the balance
being imported. Over the years the number of imported pharmaceuticals has increased
significantly. By the year 2000 Sri Lanka had approximately 9000 registered medicinal
pharmaceuticals, hundreds of which were non-essential or highly expensive or even
dangerous.
In 2005 the National Medicinal Drugs Policy (NMDP) was established with the aim of
cutting down on drug expenses and getting quality pharmaceuticals at affordable prices.
Implementation of the NMDP reduced the number of pharmaceuticals imported,
prescribed and sold in Sri Lanka to about 350 varieties.
Cosmetic Devices and Drug Authority (CDDA)
All Pharmaceutical and medical equipment imports to Sri Lanka are stringently monitored
by the drug regulatory arm of the MOH, the Cosmetic Devices and Drug Authority (CDDA).
The CDDA ensures that the quality standards of pharmaceuticals and medical devices
available to the Sri Lankan market meet the standards set by the authority consistently.
Post surveillance procedures ensures that all those responsible for holding and distributing
medical products imported to the country are held responsible until such time the products
are delivered to the end user for consumption.
Introductory Document – PC Pharma Limited 9