• Nat’l Chamber writes to NMRA citing non-sustainability under buy-back agreements  

The National Chamber of Pharmaceutical Manufacturers of Sri Lanka (NCPM) expressed concerns about what it called an ‘imminent threat posed to the survival of the local pharmaceutical manufacturing industry’ by a newly gazetted pricing formula for medicines. 

It pointed to a critical national policy concern with long-term implications for public health, foreign exchange stability, and the future of industrial self-reliance.

In a letter addressed to the National Medicines Regulatory Authority (NMRA) Chairperson Dr. Ananda Wijewickrama, the NCPM urged the NMRA to take several steps to prevent the said policy from having an adverse impact on the local pharmaceutical industry. 

The presented recommendations include suspending the application of the newly gazetted formula to local manufacturers under buy-back agreements, adopting a differentiated pricing framework based on the reference price of the original medicine and/or the United States Food and Drug Administration-approved products, reflecting the true cost structure of Sri Lankan manufacturing, and institutionalising a national policy that ensures pharmaceutical self-sufficiency and protects the investments made by local manufacturers in alignment with the Government strategy. It pointed to policies adopted by countries such as Bangladesh, India, and China which are more beneficial to their local pharmaceutical industries.

“The impact of the newly gazetted formula, derived from Indian and South Asian market benchmarks, is wholly unsustainable for application to local manufacturers under buy-back agreements,” the NCPM said, adding that while such a mechanism may be acceptable for imported generics, its blunt application to domestic manufacturers may result in several adverse impacts including jeopardising medicines security by driving local producers out of business and also destroying the return on investment made in reliance on Government assurances. The NCPM added that at the Pricing Committee meeting held on 6 August of this year, it was acknowledged that the formula may not suit local manufacturers.

The NCPM stressed that unless resolved decisively, this issue will weaken investor confidence not only in pharmaceuticals but across Sri Lanka’s wide manufacturing sector.