Hon. (Dr.) Nalinda Jayatissa - Minister of Health and Mass Media
The Minister of Health and Mass Media stated that the expected 2025 expenditure on medicines by the Ministry of Health and affiliated institutions is Rs. 183.8 billion, including major allocations to SPC, SPMC, MSD, local hospital emergency purchases, AIIB-supported procurement, and Indigenous Medicine. He said 862 priority items have been approved, with 246 to be procured locally and 616 imported, and that orders for imported items were placed through SPC by 31 January with Rs. 90 billion allocated, expected to rise by a further Rs. 20 billion. He outlined the procurement process based on formulary committee recommendations, institutional estimates, and tender procedures, and stated that supplier delays are handled under contract terms while shortages are managed jointly by SPC and MSD.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Speaker, the answer is as follows.
¶ 02 (a) (i) The expected total expenditure in 2025 for medicines purchased by the Ministry of Health and its affiliated institutions is Rs. 183,800,000,000.00 (Rs. 183.8 billion).
¶ 03 Breakdown: - For Provincial Hospitals via the Department of Indigenous Medicine: Rs. 200,000,000 (Rs. 200 million). - State Pharmaceuticals Corporation (SPC): Actual 2024 expenditure was about Rs. 48 billion (65% of requirement); 2025 allocation is Rs. 90 billion. - Health System Response Project (AIIB): 2024 expenditure Rs. 9.98 billion; 2025 allocation Rs. 7.7 billion. - State Pharmaceuticals Manufacturing Corporation (SPMC): 2024 actual Rs. 26.8 billion; 2025 allocation Rs. 30 billion. - Medical Supplies Division (MSD): 2024 actual Rs. 37 billion; 2025 allocation Rs. 37.88 billion for local manufacturers (29 manufacturers). - Linear Ministry hospitals’ local purchases (for emergencies): 2024 expenditure Rs. 21 billion; 2025 estimate Rs. 20 billion. - Department of Indigenous Medicine: 2024 expenditure Rs. 100 million; 2025 estimate Rs. 200 million.
¶ 04 For 2024/2025, a prioritized list of 862 items for hospitals and health institutions has been approved. Of these, 246 medicines are to be procured locally; orders amounting to Rs. 46.72 billion for 2025 have already been placed with Cabinet approval and are being supplied.
¶ 05 A total of 616 items are to be imported. For 2025 quantities, orders were placed with SPC, and order placement was completed by 31st January. Accordingly, Rs. 90 billion has been provided to SPC. Initially, we estimated about Rs. 60 billion based on last year’s reduced-day expenditure but increased to Rs. 90 billion, and we expect to provide a further Rs. 20 billion within about six weeks, totalling around Rs. 110 billion to SPC, more than double last year.
¶ 06 Ordering methodology: Based on the Formulary Revision Committee’s recommendations (held biennially) and specialist associations, a prioritized list is prepared. Institutions submit annual budget estimates in the fourth quarter; MSD places import orders with SPC by 31st January with a 11-month lead time, and places local manufacturing orders at the end of the second quarter each year. Tenders are underway, and I can confirm they are being processed properly.
¶ 07 (v) If delivery of an ordered medicine is delayed, the supplier is responsible as per contract terms, and actions are taken accordingly. Any emerging shortages are managed jointly by SPC and MSD through alternative measures.
¶ 08 (b) Does not arise.
Provenance
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- Hansard, Tuesday, 21 October 2025 ·No. 22635 ·English daily/uncorrected Hansard
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Cite as: Hon. (Dr.) Nalinda Jayatissa - Minister of Health and Mass Media. 10th Parliament, Parliament of Sri Lanka. Hansard, 21 October 2025. No. 22635. Politick, https://staging.politick.io/lk/speeches/29505