Updated on 3 August 2012
However, according to BMI, the attractiveness of the pharmaceutical market is underpinned by the well-developed healthcare infrastructure and government initiatives with regard to the improvement of public health indicators. Funding pressures will continue to hamper the development of pharmaceutical values, especially as less than 50 percent of total healthcare spending is provided by the state. In the medium to long term, economic improvements will allow for wider ranging patient participation in their own healthcare and medical expenditure.
As drug access in the island nation is about 95 percent, there has been a wastage of pharmaceutical products. The ministry of health has decided to impose restrictions to overcome the wastage. In addition to this, government has also decided to reimpose price control on drugs, which was removed through a special gazette notification in 2002, after considering complaints from people.
This government step received opposition from Sri Lankan Chamber of Pharmaceutical Industries (SLCPI) by saying that it will affect the local pharmaceutical industry that has been experiencing growth, as essential pharmaceutical prices have been declining or flat during the last couple of years due to healthy competition.
Although Sri Lanka is an emerging pharmaceutical market, it boasts of relatively well-developed healthcare infrastructure and coverage. However, Sri Lanka's low per capita spending on medicines will remain one of the key brakes on the development of the country's pharmaceutical market, despite a steady population increase and economic development. Still, the long term expectations that private sector will play an increasingly important role in healthcare financing should stimulate market growth.