Pharmaceutical prices

The Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) has urged the government to reevaluate pharmaceutical prices within a month due to unexpected changes in the exchange rate. The SLCPI president highlighted that the industry is already facing losses, and the recent increase in the exchange rate and a 16% price reduction would exacerbate the industry's challenges.

 

 

The president emphasized that a 16% price cut would be unsustainable for the industry if the exchange rate continues to rise. The sector had calculated the appropriate exchange rate at Rs. 295 after the price reduction, considering the exchange rate parity and price increases since 2016. However, the sudden rise in the exchange rate to around Rs. 335 has resulted in losses ranging from Rs. 295-319 for the industry.

 

 

Additionally, the president mentioned other factors like energy costs that should be considered when determining prices. The pharmaceutical industry heavily relies on energy for operations such as running cold chambers, freezer trucks, and transportation.

 

 

The president stressed the need for a price review within a month, as the industry can only sustain itself until that point. Although the Health Ministry has issued a new regulation to revise the Maximum Retail Prices (MRPs) of 60 types of medicines, reducing prices by 16% starting from 26 June, the SLCPI believes that further adjustments are necessary due to the fluctuations in the exchange rate.

 

 

Efforts to communicate with the Minister of Health and the Health Ministry Secretary regarding the SLCPI's request and the possibility of additional reductions in pharmaceutical prices were unsuccessful.