SPMC suffers major losses, audit reveals

By Chaturanga Pradeep Samarawickrama

The Sri Lanka State Pharmaceutical Manufacturing Corporation (SPMC) has suffered serious economic losses due to inefficiencies in supplying essential medicines and the use of substandard or expired imported chemical raw materials, the National Audit Office report for 2024/2025 reveals.
Chairman of the Medical and Civil Rights Doctors’ Trade Union Alliance Specialist Dr. Chamal Sanjeewa said that the report highlights that the corporation failed to produce sufficient quantities of high-demand drugs such as Flucloxacillin, Clopidogrel, Penicillin, Tramadol, Metformin, Rosuvastatin, Chloroquine, Paracetamol, and Ciprofloxacillin, preventing timely distribution to both the market and the Health Ministry.
He said the annual production plan aimed for 420 million units, but the actual output fell to 314 million units, resulting in a shortfall of 87 million units and a decrease of 381 million units compared to the previous year.
The report also cites quality issues, including tablets breaking easily, uneven weight, poor appearance, and difficulty breaking, which forced production to be halted 14 times, incurring additional costs.
Although plans existed to enter joint ventures to supply medicines, no products were delivered during the year, further contributing to economic losses.
Dr. Sanjeewa warned that these inefficiencies expose the government to financial losses and potential corruption, urging the Bribery Commission and the Criminal Investigation Department to conduct a thorough investigation into the audit findings.