More companies are engaging with local pharmaceutical manufacturing and Sri Lanka will be able to amass around USD 15 million export revenue from Pharma exports by 2030 said President Sri Lanka Pharmaceutical Manufacturers Association (SLPMA) Kalana Hewamallika. Currently this figure is around USD 5 million.
He recalled that in 1956, Sri Lanka took a momentous leap into the Western pharmaceutical industry when Pfizer –Dumex Ltd, entered the pharmaceutical manufacturing sector which marked the beginning of Sri Lanka’s journey towards its footprint in the pharmaceutical field.
“Today more companies are engaged in manufacture but unlike other products any pharma product manufactures have to be used in the local market for five years before they are being exported.”
He said that Sri Lanka is globally known to maintain high manufacturing costs and there is a good demand for ‘Made in Sri Lanka’ pharma products in the world and this should be capitalized.
“By manufacturing high-quality Western medicines, we are actively contributing to the creation of a self-sufficient Sri Lanka, which will result in the saving of foreign currency. Presently, our members manufacture more than 150 molecules of medicines, consisting of more than 50 therapeutic categories and exceeding 10 dosage forms. Local manufacturers of pharmaceuticals command 15% of the market share and approximately 25% of the essential medicines used in the government hospitals and clinics are supplied by our manufacturers.”
Due to this process we have saved the country around USD 100 million annually and this number is fast increasing. “Creating Oya Maduwa Pharma zone in Anuradhapura too is a step taken in the right direction.”
Private sector local manufacturers of pharmaceuticals entered into forward buying agreements with the Ministry of Health in 2015 under a Public Private Partnership scheme which were renewed in 2019. These agreements enabled such manufacturers to invest in new factories and upgrade their existing factories expanding local pharmaceutical production.”
Senior Vice President Nalin Kannangara however said that it’s a big question as to why this ‘buy back agreement’ is effective only for five years as it could be extended to 10 years. “If this is done more local and foreign entrepreneurs will invest and the Health Ministry should give serious thought to this.”
He said that long term policies are needed similar to Nepal, Bangladesh and India which are today major pharma exporters to the world. Treasurer Viraj Manathunga said that as SLPMA celebrated their 60th anniversary and signed a historic MoU with the Indian Drug Manufacturers’ Association.
“Together, we will embark on a shared mission to grow the local pharmaceutical manufacturing industry with investments and transfer of technology, to provide a healthy life for the people of our country and develop our economy.”