Sri Lanka may face a shortage of medicines as the pharmaceutical industry struggles with a sharp rupee depreciation while the regulator continues to hold drug price ceilings unchanged, EconomyNext reported on Tuesday.
The Central Bank’s indicative exchange rate has fallen 5.6% in six months — from Rs. 302.6 per US dollar in October 2025 to Rs. 319.5 this week — sharply raising the rupee cost of imported drugs in a market where imports account for roughly 85% of supply. Sri Lanka imported US$ 667 million worth of medicines last year.
The National Medical Regulatory Authority (NMRA) last revised drug prices in July 2023, when it imposed a 16% cut on selected products, the Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) said. NMRA guidelines allow a review of maximum retail prices when the exchange rate moves more than 5% in either direction.
“Because there is a huge exchange increase, the industry is due for a price increase,” SLCPI President Shantha Bandara told EconomyNext. “All the other products have gone up except medicine which went down significantly. If that doesn’t happen, we are unable to place orders.”
Sri Lanka Pharmaceutical Manufacturers’ Association (SLPMA) President Nalin Kannangara said medicine costs had risen by up to 25% due to exchange-rate depreciation and Middle East instability. “Now, because of this Middle East crisis, there can be a shortage of finish pharma in the market. Imports now have a lot of challenges because of the freight issues, insurance and exchange risks associated.”
Health Minister Dr. Nalinda Jayatissa acknowledged the pressure. “There is a 5% [provision]. If there is a slight increase in the dollar, a price increase must be granted,” he told EconomyNext, adding that the government may allow an increase in the “ceiling price” for drug importers rather than the retail price.
The new disclosure adds detailed exchange-rate and importer data to the SLCPI’s April 21 warning about a looming shortage and pulls the Health Ministry on the record for the first time.
Sources: EconomyNext.
