New Delhi : The Sri Lankan agency responsible for procuring medicines has asked the Indian body representing pharma exporters to “sensitize” its members on the need to ensure medical supplies to the beleaguered island nation, according to a top official.
The request by Sri Lanka’s State Pharmaceuticals Corporation to the Pharmaceuticals Export Promotion Council of India (Pharmexcil) comes amid unprecedented financial turmoil in India’s southern neighbor, where drugstore shelves are increasingly emptying essential items.
A senior Pharmexil official, requesting anonymity, said the Indian drugmaker is concerned about paying for its exports to Sri Lanka, which awaits an International Monetary Fund bailout after defaulting on its loans.
“Our pharma exports to Sri Lanka are not huge. Sri Lanka is facing a severe economic crisis and Indian pharma giants are worried about supplying pharmaceutical items to them due to payment issues. It is too early to say how the tension in Sri Lanka is going to affect our pharma exports to that country,” said Uday Bhaskar, Director General, Pharmaxil.
Sri Lanka is India’s 18th largest partner in pharmaceutical trade. India exported pharmaceutical goods worth more than $274.40 million to Sri Lanka in FY 2011, a 25% increase over the previous year.
Exports declined to $234.56 million in FY12.
“Procurement by the State Pharmaceutical Corporation of Sri Lanka is a regular mechanism. They send circulars to the Indian High Commission in Sri Lanka and the mission informs us. The Sri Lankan counterparts had written to the Indian mission even before the crisis began. The latest circular we have received from the mission is for March-end. We have circulated these circulars to our member companies if they wish to participate. During the last few months, when this mess started, the procurement agency of Sri Lanka has been demanding supply of medicines and medicines and asking us to sensitize our member companies for exports,” Bhaskar said.
In turn, some Indian companies have reached out to Pharmaxil to request a payment mechanism to ensure smooth pharma exports. Pharmexcil is the authorized government agency for promotion of pharmaceutical exports.
“Some companies that have already supplied products before this situation developed, are facing problems in receiving payments. Some companies have approached Pharmaxsil and asked for payment arrangements, if any,” Bhaskar said.
It is not unusual for distressed countries to turn to India, which has emerged as the ‘pharmacy of the world’ in the wake of the COVID-19 pandemic, and continues to manufacture and supply vaccines across the world, especially for poor countries. Is.
The Indian pharmaceutical industry appeared confident of meeting Sri Lanka’s pharmaceutical needs.
A spokesperson for Sun Pharmaceuticals, the world’s fourth-largest generic drug maker, said: “The Indian government has extended a $1 billion line of credit to Sri Lanka to provide essential commodities including fuel, food and medicines. Sun Pharma has a strong presence in Sri Lanka and we continue to supply essential medicines to patients and doctors in the country. Ensuring uninterrupted supply of medicines to patients is our top priority.”
“For any new exports in future, our member companies are monitoring the situation in Sri Lanka to ensure that the situation returns to normalcy,” Bhaskar said.