The Cabinet has granted its consent to enter into Buy Back Agreements for the procurement of locally produced medicines and medical supplies from identified institutions for a period of one year, Cabinet Spokesman and Mass Media Minister Vijitha Herath said.
He was speaking to the media at the Government Information Department yesterday.
During the Cabinet meeting held on November 29, 2013, approval had been granted for the purchase of locally produced drugs under the Buy Back Agreement procedure in order to encourage local drug manufacturers by providing priority to the activities of the State Pharmaceutical Corporation of Sri Lanka.
Furthermore, on October 2, 2018, the Cabinet approved to grant Buy Back Agreements for local pharmaceutical manufacturing companies in contract with the Sri Lanka State Pharmaceutical Manufacturing Corporation for a period of 15 years, to purchase those medicines based on the priority given to the State Pharmaceutical Manufacturing Corporation, and to implement the agreements for supply of medicines between the local pharmaceutical manufacturers with the Ministry Health for up to ten years.
The Cabinet Office stated that accordingly, a Pricing Committee has also been appointed to decide the prices of the medicines supplied. According to the method of purchasing the drugs, it currently covers about 20 percent of the country’s medical supply needs, and it has been recognised that there is a possibility of increasing the amount up to 40 percent.
Thus, 49 local pharmaceutical manufacturing companies with the capacity to supply 454 medical supplies including drugs have been identified by the Health Ministry’s Medical Supplies Division, it added.
Accordingly, the Cabinet has approved the proposal furnished by Prime Minister Dr. Harini Amarasuriya as the Health Minister to enter into Buy Back Agreements for a period of one year for the procurement of locally produced medicines and medical supplies from the identified local institutions for a period of one year with no prejudice to the pharmaceutical manufacturing process of the Sri Lanka State Pharmaceutical Manufacturing Corporation as well as to the local pharmaceutical manufacturing establishments that have already been subcontracted.
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