News/Comment

3rd March 2002

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Govt. moves to reduce drug prices

The government has decided to allow parallel imports of branded drugs with the aim of bringing down prices through increased competition, Commerce and Consumer Affairs Minister Ravi Karunanayake said. 

"Our main aim is to ensure consumers get a fair deal and pay the right price for medicine," he said. 

There was a 'drug mafia' which was keeping the prices of pharmaceuticals high, he said.

He said he expects prices to drop by 15 to 45 percent with the end of price control and more liberal imports. Prices of imported and locally made drugs are now regulated by the Fair Trading Commission (FTC).

FTC officials said the move would be a temporary measure, operative for six months during which they would closely monitor prices. "If prices do not come down we can re-impose price controls or use other means such as tariff protection to bring them down," an official said.

For imported drugs, the FTC fixes the maximum retail prices based on a formula that allows a 65 percent mark-up that is shared by importers, wholesalers and distributors. The formula was arrived at after the FTC studied the costs of each pharmaceutical company along with that of the State Pharmaceuticals Corporation.

Prices of locally made drugs are also fixed by the FTC on a case-by-case basis and is based on total cost with a staggered mark-up that operates on the amount of value addition done here.

FTC officials said the government plans to promote competition by allowing more than one agent as well as the State Trading (General) Corporation to import branded drugs. 


JVP, EPDP to discuss ceasefire agreement with CBK

By Shelani Perera
The JVP and the EPDP are expected to meet President Chandrika Kumaratunga to discuss the ceasefire agreement between the Government and the LTTE.

The JVP which has protested strongly against the agreement is expected to meet the President this morning. 

Last week the JVP called on the people to carry out a protest against the agreement, claiming that it posed a grave danger to the country while offering the LTTE a political victory.

"We want to take the matter up with the President, because we feel there are certain clauses which are detrimental to the country," JVP propaganda secretary Wimal Weerawansa said.

Asked whether the party would back the PA stand on the agreement, Mr. Weerawansa said the meeting with the President was to exchange views on the agreement. 

Meanwhile, EPDP member S. Sivathasan said the party has asked for an appointment with the President.

'We strongly feel that the war should end but ending the war should be a joint effort by both major parties. There should be a common understanding between the two political parties," he said.


Physio agrees to pay

By Nilika de Silva 
President Kumaratunga's personal physio, Australian Mike Chomley, has now assured the government he would pay the Rs. 6 million advance on the state land he has leased nearly two years ago. 

Mr. Chomley who has received BOI approval at the time to build a health firm had not paid the advance on the lease claiming that he had not been provided access to his property, so as to enable him to obtain water and electricity. 

Divisional Secretary George Kulatunga said Mr. Chomley faced forfeiture of his lease unless he paid up. Mr. Chomley had this week contacted him and verbally assured him that the money would be paid before March 31. 

The 188 perch property situated behind the Royal Colombo Golf Course is valued at Rs. 50 million and had been obtained during the tenure of the previous government. 


Neuro unit hit by bureaucratic break-down

Administrative snags preventing the expansion of the Neuro Surgical Unit (NSU) of the Kandy hospital have seriously affected the treatment provided to patients there and forced authorities to transfer patients to Colombo.

Hospital authorities have failed to expand the facilities despite the availability of the infrastructure and an additional neurosurgeon there.

The situation has not only deprived patients in Kandy of receiving neuro surgical care, but also patients from other parts of the country who use Kandy hospital as it is centrally located. 

According to hospital sources, three operation theatres, ward space for 300 patients and a fully equipped intensive care unit have been underutilised for over two years.

While one surgeon has now been posted to the unit, the need for a second neurosurgeon is immensely felt and has been raised with the Ministry of Health, but no action has been taken.

Statistics showing the mortality rate at the Kandy Neurosurgical ICU (NSICU) for the period June 2000-May 2001 indicated that the death rate was often above 25% with March 2001 showing a peak of 38%.

During the same period, the operation theatre used by the then neurosurgeon had remained closed on 87 days out of 250 working days while the NSU remained closed due to the lack of a Neurosurgeon for 27 days. On 37 days, during the same period, a neurosurgeon has not been available.

Reportedly most neurosurgical operations in the hospital are done by poorly qualified people without supervision, resulting in so many post-operative deaths. Statistics show that 222 patients have been transferred from Kandy and Peradeniya to the Colombo NSU from June 2000 to May 2001 while admissions to the Kandy NSU totalled 1840.

Among the list of patients to be operated in Kandy presently is an 18-year-old boy suffering from a brain tumour who is slowly losing his sight and will turn totally blind if not operated in time.

It takes seven years to train a neurosurgeon and despite the need for doctors in this specialty, the interests of few to accommodate their personal agendas have deprived thousands of patients from receiving professional care. The improvement of the NSU in Kandy will not only reduce the inconvenience caused to patients being transferred to Colombo, but also turn to be a vital referral centre due to it being centrally located. 



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