Some 19 out of the 37 Osusala drug stores , Sri Lanka’s state-owned pharmacy retailer were running at losses and some original drugs were no longer available at those outlets forcing patients to buy drugs from other pharmacies.
These 19 outlets have incurred a loss of Rs. 41.29 million, a government audit inspection revealed.
Seven Osusala stores in Avissawella, Minuwangoda, Diyatalawa, Tangalle, Hambantota, Jaffna, and Ratmalana, had sustained losses continuously from the year 2013 up to the year under review (2017/18).
No methodology had been put in place to minimise the losses, and 37.54 per cent of the total loss for the year under review had been sustained by the said seven Osusala stores, official sources said.
The State Pharmaceuticals Corporation (SPC) engages with open market operations through Osusala outlets, franchised Osusala outlets and registered distributers covering the entire island.
The Treasury has directed the SPC to compensate those outlets for losses but no action has been taken so far, a senior official said.
SPC has entered into a Corporate Intent (agreement) with the Ministries of Finance and Health in June this year to update performance targets to streamline the corporation management and its activities.
Under this agreement the Treasury will have to intervene to prevent the closure of the loss making Osusala outlets, he said.
Measures have been taken to recover the expenses from the suppliers relating to poor quality drugs, and the short supply of drugs to the Medical Supplies Division.
In addition administrative charges thereon and the expenses on the disposal of such stocks will also have to be recovered from suppliers.
(LI)