The Academy of Health Professionals (AHP) raised concerns regarding the State Pharmaceuticals Corporation (SPC), alleging that it functions more as a labelling entity rather than as an actual manufacturer of medicines. 

Speaking at a press conference held yesterday (9), AHP President Ravi Kumudesh emphasised the urgent need to reform the SPC and transform it into a company that genuinely produces pharmaceuticals, rather than simply labelling products imported from other countries which is 'fruitless' according to him. He pointed out that while the SPC receives around 300 orders annually, over 200 of these orders are fulfilled from private companies, whose products are merely labelled under the SPC brand. 

According to his claims, around 80% of the drugs "produced" by the SPC are sourced from affiliated companies and labelled as SPC products. He argued that the current system brings no significant benefit to the country or its people, and instead results in increased medicine prices. "This should be transformed into a manufacturing company that actually manufactures medicines. Otherwise, there is no point in maintaining a State entity for increasing medicine prices and facilitating frauds," he claimed. 

He further praised the recent efforts of the incumbent Health Secretary, particularly the invitation extended to local producers, which is aimed at creating healthy competition between both local and foreign pharmaceutical companies. He claimed that this initiative has already saved approximately Rs. 16 billion this year (2024). "It is the responsibility of all health administrators to create competition between companies. Through that, the Health Secretary has saved about Rs. 16 billion for this year alone," he said. 

Kumudesh also responded to criticisms suggesting that the Health Secretary was facing political pressure for these reforms. He highlighted that the cost savings had been achieved without increasing the price of a single drug. He stressed that increasing competition among pharmaceutical companies is essential for improving the quality of medicines and reducing costs. He accused the "drug mafia" of manipulating regulatory bodies to maintain monopolies, warning that certain individuals unknowingly support this monopoly. He called for unity in backing the reforms, noting that before the Health Secretary's new decision, around Rs. 54 billion was spent on medicines annually, while now, the same amount of drugs can be procured for less than Rs. 38 billion. "This decision must be supported to prevent the drug mafia from continuing to exploit the system. Political parties must refrain from interfering in this matter, as it is in the best interest of the nation," Kumudesh further claimed.

Health Secretary Dr. Palitha Mahipala and SPC Chairperson Dr. Ajith Mendis were not available for comment.