The Medical Supplies Division (MSD) is currently grappling with an unpaid amount of Rs. 8.1 billion owed to medicine suppliers, Minister of Health Dr. Ramesh Pathirana revealed in Parliament yesterday (23).

The Minister made these remarks in the Parliament yesterday, in response to a question raised by Opposition Parliamentarian S.M. Marikkar. Minister Pathirana also disclosed that Rs. 4 billion of this outstanding sum has remained unpaid for more than three months. Speaking further, Minister Pathirana assured that measures are underway to clear these overdue payments within this month. 

“Steps will be taken to settle the payments which are overdue for more than three months within this month,” he stated. He clarified that hospitals have been allocated funds for local purchases to ensure the continuity of the supply chain. 

“Hospitals have been allocated funds to make local purchases and the supply chain will not be affected,” he assured. He emphasised that the allocation of funds to hospitals for local purchases is a strategic move to mitigate any disruptions in the availability of medicines and that this approach aims to provide immediate relief while the Ministry works on clearing the outstanding payments to suppliers.

Minister Pathirana’s comments come amidst growing concerns about the financial stability of the MSD and its ability to maintain an uninterrupted flow of essential medicines to healthcare facilities across the country. The Opposition and the civil society organisations affiliated to the health sector have been continuously querying the substantial backlog in payments.