Thursday Jan 15, 2026
Thursday Jan 15, 2026
Thursday, 15 January 2026 00:21 - - {{hitsCtrl.values.hits}}
The Government will settle outstanding pharmaceutical supplies payment dues worth Rs. 23.87 billion this year.
The Cabinet of Ministers on Monday approved the payment related to pharmaceutical supplies for the period from 1 January 2018 to 31 December 2023, with the amount to be paid on an instalment basis within 2026.
The issue relates to payments for pharmaceuticals purchased, stored and distributed by the Medical Supplies Division from the State Pharmaceutical Corporation (SPC), State Pharmaceutical Manufacturing Corporation, and local manufacturers.
Although payments for pharmaceuticals supplied up to 31 December 2023 have been made using funds allocated from the General Treasury to the Health Ministry, the SPC has repeatedly informed the Ministry that significant arrears remain unsettled.
According to the SPC, an outstanding balance of Rs. 32.92 billion has accumulated over a longer period spanning from 2008 to 2023.
“The matter was taken up at a high-level meeting held in connection with Budget estimates for 2026, with the participation of the President, where concerns were raised about the scale of unpaid dues and their implications for the pharmaceutical supply chain,” Cabinet Spokesperson and Health Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing on Tuesday.
He said following directions issued at that meeting, detailed studies were conducted under the leadership of the Department of State Enterprises to verify the extent of payments that need to be settled.
“These studies confirmed that an amount of Rs. 23.87 billion relating to the period from 1 January 2018 to 31 December 2023 is due and should be paid,” he added.
The Cabinet approval clears the way for settling this verified amount through instalments during 2026, providing some relief to the SPC and other suppliers involved in the public health supply system.
Meanwhile, he said the outstanding amount relating to the earlier period from 1 January 2008 to 31 December 2017 is still being calculated, indicating that further financial commitments may arise once that assessment is completed.
