National Medicines Regulatory Authority (NMRA) Chief Executive Officer Dr. Saveen Gamage said that the agency has reduced the cost of state-procured medicines in recent months by fostering greater competition among market players.
He said that the supply of medicinal drugs had long been controlled by a small group of suppliers, creating an oligopoly that drove up prices.
“The NMRA contributed to this situation by delaying the registration of new companies from 2018, effectively limiting the number of firms eligible to participate in tenders. This lack of competition helped suppliers to inflate their bids,” he said.
However, significant reforms were initiated after the appointment of Dr. Ananda Wijewickrama as Chairperson of the NMRA. The Authority fast-tracked pending registrations, for more suppliers to participate in the Health Ministry’s procurement process.
“Earlier, certain drug categories had only one or two registered suppliers in Sri Lanka. This limited choice enabled monopolistic practices that kept prices high. Over the past few months, we have prioritised expanding the number of registered suppliers and drugs, resulting in increased competition and a notable drop in procurement costs,” Dr. Semage said.
Dr. Wijewickrama said that the introduction of new competitors has pressured suppliers to lower their prices. “For example, an injection previously priced at $380 per unit by a sole supplier dropped to $90 after a second supplier was registered. The original supplier was compelled to revise its bid to remain competitive,” he added.
These reforms highlight the NMRA’s efforts to enhance affordability and accessibility in Sri Lanka’s pharmaceutical sector by encouraging broader market participation.
