Medicine prices set to surge

Colombo, June 18 (Daily Mirror) - Pharmaceutical prices are expected to rise after the government indicated its willingness to address concerns raised by Indian suppliers regarding the non-renewal of import licenses and the National Medicines Regulatory Authority (NMRA)'s insistence on lowering prices.

Sri Lanka depends on India for nearly 30 percent of its pharmaceutical requirements, with a substantial share of medicines imported from that country.

Recently, Indian pharmaceutical suppliers raised concerns over delays in the clearance of more than 1,000 import licences for pharmaceutical products and the NMRA's insistence on reducing the Maximum Retail Price (MRP) even for medicines that are not included in the price-control list. Following discussions with the suppliers, the Indian High Commission raised the matter with the Sri Lankan authorities, Daily Mirror learns.

The suppliers have also pointed to the appreciation of the US dollar, which they say has not been adequately taken into account by the NMRA. An informed source said the licences are believed to have been pending since January 2026, raising concerns about possible shortages in the market by June or July 2026.

According to the source, pharmaceutical companies generally maintain stocks sufficient for three months. However, some companies have already reported that five or six of their products are out of stock. The Sri Lankan authorities have now shown flexibility in addressing these concerns.

Globally, countries adopt varied drug-pricing frameworks, regulating prices mainly for medicines deemed essential to public health while allowing market-based pricing for other medicines and innovative products. This approach is widely followed in countries such as France, India, Italy, Brazil, the United Kingdom and Canada through a combination of regulation and negotiated pricing under public procurement and insurance systems.

In Sri Lanka, 61 pharmaceutical molecules are currently under price control, accounting for approximately 30 percent of the market. The prices of medicines have also not been allowed to increase for more than 10 years.

Earlier, a Health Ministry official said that the prices of locally manufactured pharmaceutical products would also increase next month due to the rising cost of imported raw materials.