report on ECONOMYNEXT online, April 7, 2023 at 2:45 pm
– Sri Lanka’s Supreme Court has temporarily suspended importation of Indian pharmaceuticals under its credit line until a further court order amid concerns over quality and safety as well as question over the legality of the procurement.
The Supreme Court on Thursday (06) granted leave-to-proceed in the Fundamental Rights petition filed by Transparency International Sri Lanka (TISL), which stated serious doubts regarding the quality, safety, and efficacy of the pharmaceuticals purchased under the Indian Credit Line.
The Supreme Court has ordered the suspension of further importation of pharmaceuticals without obtaining a further order from the Court after proving that the quality and safety requirements and the procurement is lawful.
The apex court also ordered the release of of two consignments that have already reached Sri Lanka for consumption “only after the conducting necessary tests, and the NMRA expressing its independent decision assuring the safety, quality, and efficacy of the already imported pharmaceuticals”, the TISL said in a statement.
The petition was filed against the steps taken by the Cabinet of Ministers, the Minister of Health, the Ministry of Health, and the National Medicines Regulatory Authority (NMRA) to procure medical supplies from two Indian private companies – Gujarat-based Savorite Pharmaceuticals (Pvt) Limited and Chennai-based Kausikh Therapeutics (P) Limited
The petition has mainly questioned the role of the cabinet of ministers in procuring medical supplies through unregistered private suppliers, the role of the NMRA in providing a Waiver of Registration to procure medical supplies from unregistered suppliers, non-compliance with procurement guidelines including the emergency procurement process, and abuse of process by the Minister of Health and the Chief Executive Officer of the NMRA.
The Waiver of Registration is required to clear the imported drugs through Customs.
The TISL through the FR case sought interim orders against the procurement based on this unsolicited proposal and the placing of any orders, approvals for Waiver of Registration of 38 drugs, importation of said drugs into Sri Lanka, and making payment for such drugs.
Health officials have said that 80 percent of the drugs brought to Sri Lanka under the Indian Credit Line system have not been registered.
Sri Lanka was forced to seek Indian Credit Line to purchase its essential medicines after its unprecedented economic crisis resulted in shortage of dollars to acquire most essential drugs.
The island nation’s declaration of sovereign debt default deprived it from purchasing drugs on credit.
India assisted with a $1 billion credit line to purchase essential foods, fuel and drugs with a condition that most of them should be bought from India if they are available, government officials have said.
Health officials raised concerns when Sri Lanka’s health ministry attempted to purchase drugs from unregistered companies, while registered Indian companies were available to buy the same drugs under the credit line
https://economynext.com/sri-lankas-apex-court-suspends-indian-drug-purchase-under-credit-line-amid-safety-concerns-117695/
