The Cabinet of Ministers has approved the establishment of buy back agreements for the procurement of locally produced medicines and medical supplies from designated institutions for a duration of one year.
During the Cabinet meeting held on November 29, 2013, a decision was made to purchase locally manufactured drugs under the Buy Back Agreement procedure to encourage local drug manufacturers and prioritize the activities of the State Pharmaceutical Corporation of Sri Lanka.
Additionally, on October 2, 2018, the Cabinet granted approval for buy back agreements with local pharmaceutical manufacturing companies in partnership with the Sri Lanka State Pharmaceutical Manufacturing Corporation for a period of 15 years. This initiative allows for the procurement of medicines, prioritizing the State Pharmaceutical Manufacturing Corporation, and establishes agreements for the supply of medications between local pharmaceutical manufacturers and the Ministry of Health for up to 10 years.
According to the Cabinet Office, a pricing committee has been appointed to determine the prices of the supplied medicines. Currently, this procurement method covers approximately 20% of the country’s medical supply needs, with the potential to increase that coverage to 40%.
The Ministry of Health’s Medical Supplies Division has identified 49 local pharmaceutical manufacturing companies capable of supplying 454 medical products, including various drugs.
Consequently, the Cabinet of Ministers has approved the proposal submitted by Prime Minister Dr. Harini Amarasuriya, who serves as the Minister of Health, to enter into buy back agreements for the procurement of locally produced medicines and medical supplies from these identified local institutions for one year. This decision ensures that the pharmaceutical manufacturing process of the Sri Lanka State Pharmaceutical Manufacturing Corporation, as well as the local pharmaceutical manufacturing establishments already contracted, remains unaffected.
