Indian LOC: $ 50 m allocated for meds unused

Sri Lanka is yet to utilise nearly $ 50 million from the $ 110 million allocation made to the pharmaceutical sector from the $ 1 billion Indian Line of Credit (LOC), The Sunday Morning learns.

Health Ministry Secretary Janaka Sri Chandraguptha confirmed that only around $ 60 million had been utilised from the allocations given to the health sector so far.

“We have called for tenders from private parties too. There is a complex process involving LOC funds. We have submitted documents to the Indian High Commission too,” he said.

The funds allocated from the LOC were distributed among institutes attached to the Ministry including the State Pharmaceuticals Manufacturing Corporation (SPMC), State Pharmaceuticals Corporation (SPC) and private sector, according to Chandraguptha.

For some tenders, the procurement has already been commenced, he said, adding that discussions were ongoing to see the possibilities of importing necessary medical equipment from India. “It is not finalised yet,” he added.