Government Takes Urgent Action to Reduce Medicine Prices

Government Takes Urgent Action to Reduce Medicine Prices

News Today: The Government is implementing measures to lower medicine prices and improve healthcare access.

The Sri Lankan Government is taking proactive measures to lower the prices of medicines, providing much-needed financial relief to the public. Health and Mass Media Minister Dr. Nalinda Jayatissa made this announcement during a parliamentary debate on the budget allocation for his ministry.

The minister revealed that discussions are underway with pharmaceutical manufacturers and importers to implement a price regulation system. A special formula is being developed to ensure medicine prices remain affordable and stable. Additionally, the Government is considering tax reductions, including VAT relief and electricity concessions, to ease the financial burden on pharmaceutical suppliers.

Dr. Jayatissa emphasized that these initiatives aim to ensure essential medicines are accessible to all citizens. The 2025 budget has allocated Rs. 479 billion to the Ministry of Health, with an overall health sector budget of Rs. 604 billion. This includes Rs. 107 billion for capital expenditure and Rs. 496 billion for recurrent expenses.

Major Healthcare Investments

The Government has outlined five key areas of healthcare development:

  1. Strengthening primary healthcare
  2. Improving secondary and tertiary hospitals
  3. Ensuring uninterrupted healthcare services
  4. Addressing malnutrition
  5. Promoting medical tourism to boost foreign investment

Sri Lanka currently records 200 to 210 million outpatient visits annually, with each person seeking medical care 10 to 12 times per year. To improve primary healthcare access, the Government plans to establish one primary healthcare center per 5,000 people, allocating Rs. 12.1 billion to this initiative.

The World Bank has pledged $100 million for a five-year primary healthcare development project, under which 1,000 new centers will be built this year. Currently, Sri Lanka has 486 district hospitals and 545 primary healthcare centers, with funding allocated to upgrade 1,031 treatment centers.

Expanding Hospital Facilities and Medical Services

To improve secondary and tertiary healthcare, the Government is:

  • Allocating Rs. 1.5 billion to upgrade emergency treatment units at Kandy, Kegalle, Trincomalee, Ampara, and Chilaw hospitals.
  • Investing Rs. 1.6 billion in a cardiac care center at Lady Ridgeway Children’s Hospital, Colombo.
  • Partnering with JICA to establish cardiac catheterization units in Kandy, Kurunegala, Badulla, and Trincomalee hospitals.
  • Installing radiotherapy linear accelerators in Ratnapura, Badulla, Kurunegala, and Anuradhapura hospitals within the next year.
  • Allocating Rs. 25 billion for essential medical equipment for secondary and tertiary hospitals.

Addressing Estate Hospitals and Health Tourism

Estate hospitals, which face administrative issues due to land ownership complications, will be brought under Government control. A Cabinet paper is set to be presented to integrate 44 estate hospitals into the public healthcare system.

Recognizing the potential of medical tourism, the Government has allocated Rs. 5 million to develop initiatives integrating Ayurvedic healthcare services. Neville Fernando Hospital is being developed as a medical tourism hub, while Potuvil Hospital has been placed under Central Government control to support this initiative.

Investment in Ayurvedic and Nutrition Programs

The Government is also investing in Ayurvedic medicine, allocating Rs. 300 million for the Borella Ayurvedic Teaching Hospital and Rs. 368 million for other Ayurvedic hospitals.

Additionally, a three-year nutrition program is being launched to tackle both malnutrition and obesity. Rs. 5 billion has been allocated for Thriposha production, with Nuwara Eliya receiving the first batch for children aged six months to three years.

Healthcare Recruitment and Workforce Expansion

To address staff shortages in the health sector, the Government plans to appoint:

  • 976 family health service officers
  • 238 public health inspectors
  • 65 pharmacists
  • 43 occupational therapists
  • 41 radiographers

In April, 3,147 nursing officers and 1,000 attendants will receive appointments. Additional recruitment will include:

  • 151 pharmaceutical compounders
  • 68 school dental surgeons
  • 61 X-ray technicians
  • 30 entomologists
  • 22 public health laboratory technologists
  • 88 radiographers
  • 17 physiotherapists

These appointments will begin training in early April to strengthen the country’s healthcare workforce.

Conclusion

With these strategic measures, the Government aims to provide affordable medicines, enhanced healthcare facilities, and improved medical services across Sri Lanka. The focus remains on universal health coverage, sustainable development, and economic stability within the health sector.