Hon. (Dr.) Najith Indika

¶ 01 Hon. Deputy Chairperson of Committees, thank you.

¶ 02 During today’s debate on the Regulations under the NMRA Act No. 5 of 2015, several points arose. The rationale and why this government brings these regulations have been explained by the Hon. Minister and our speakers. Since 2015 there has been a continuing need to control medicine prices fairly for the public, without being unfair to other stakeholders, through due process. Yet this process was delayed amidst various issues. Although a Medicine Price Control Committee was set up on 21 October 2019, five years later it had not reached its end goals. The Opposition claims this may cause shortages. We have seen such claims.

¶ 03 We know what “medicine shortages” mean. As the Minister and others noted, there are some gaps now, though less than in past years; earlier shortages were much worse. Past difficulties—including even fatal outcomes—were linked to how earlier authorities managed procurement. Two main factors affected shortages: the economic crisis disrupted procurement, and opponents now say “avoid emergency purchases to prevent corruption,” but they know how the system works: from tender to delivery takes at least 8–9 months even when started on time. As the Minister said, this government has significantly advanced procurement. For example, by 20 October 2024, about Rs. 3.24 billion worth of medicine tenders had been awarded; by the same point in 2025, about Rs. 24.52 billion—eight times—had been awarded. The message is that procurement is being regularized after earlier failures, and the accumulated shortages will be resolved in coming months.

¶ 04 Quality issues have also been discussed, including the infamous case where, instead of human immunoglobulin, water was allegedly supplied; court cases continue. We are now focusing on quality procurement and ending shortages.

¶ 05 Another debate is whether price control will cause shortages or drive businesses away. Price control is not the only method; we have introduced two mechanisms via Gazette—MRP (Maximum Retail Price) and MCP (Maximum Ceiling Price). Earlier, during 2016–2018, retail prices of selected lists (47, 48, 23 items) were adjusted, but that was limited. The new MRP approach uses scientific calculation—CIF, insurance, freight, supply chain costs, duties, and median values—to set prices. WHO criticisms cited by some SJB Members pertained to previous methods, not to this formula.

¶ 06 On local purchasing: the Minister never said patients should go to pharmacies because hospitals lack medicines. Due to shortages rooted in prior procurement gaps, we expanded local purchasing limits via circular of 26 April this year, increasing caps (e.g., from Rs. 100,000 to Rs. 400,000; and from Rs. 500,000 to Rs. 1.8 million for some hospitals) so hospitals can bridge gaps while central procurement normalizes.

¶ 07 Regarding Section 118(4), it does not require unanimity of all parties; it requires consultation, which has been done. On profit sharing in the supply chain: a proper formula must be fair to vendor, manufacturer and patient—ensuring reasonable, not excessive, margins.

¶ 08 In conclusion, consistent quality service in our free health system has long been upheld by dedicated health workers—doctors, nurses, PHMs, and others—often under minimal and difficult conditions. These reforms will enable the government to support and enhance that service.

¶ 09 Thank you.