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Yevan David’s rookie FIA Formula 3 season ended with one particularly telling statistic: 0.273 seconds. That was all that separated the Sri Lankan from pole position in the second Madrid qualifying session. Ninth on the grid was his best qualifying result of the year and completed a sequence that neatly defined his late-season progress. Silverstone had shown he could defend at the front, Monza that he could fight through the field, and Madrid that he could put together a lap among the leading runners.

David entered 2026 after finishing second overall and winning Rookie honours in Euroformula Open, then used New Zealand’s Formula Regional Oceania Trophy as preparation for FIA Formula 3. Melbourne demonstrated immediately how substantial the step would be. Limited track time, tyre preparation and an exceptionally tight field meant small mistakes carried much greater consequences than in previous championships. David left Australia without the result he wanted, but with a far clearer idea of where the work was required. Monaco, Barcelona and the Red Bull Ring continued that education. Pace appeared in flashes, but consistently putting the whole weekend together remained the challenge.

By Silverstone, David felt he understood the car better and qualified 11th, his strongest grid position to that point. Under the reverse-grid Sprint format, that put him on the front row. What followed became the breakthrough of his season.

David held second behind Ugo Ugochukwu and defended the position under sustained pressure to become the first Sri Lankan to stand on an FIA Formula 3 podium. A day later, he added seventh in the Feature Race, completing his first double-points weekend. At the time, David called Silverstone ‘a turning point’. Looking back after Madrid, he could explain more precisely why. ‘The biggest difference compared with Melbourne is that I now understand fundamentally how to drive the car fast. My lap execution, racecraft and confidence were already there to an extent and they all improved during the season, but the biggest change was understanding the car itself. ‘Once that became natural, I could drive instinctively and the speed came with it. That was when it really clicked for me, definitely from Silverstone onwards.’

Spa and Budapest brought more frustration, but the summer break gave David another opportunity to reset. He returned to Monza feeling mentally fresher and better able to process what the car was doing. The result was his strongest complete weekend of the season.

Starting 17th in the Sprint, David worked through the field to finish fourth. He repeated the result in the Feature Race from 16th, completing two overtakes on the final lap and at the final corner. Across the two races, he gained 25 positions. ‘I can’t explain how good that weekend felt,’ he said. ‘It was good to get a P4 in the Sprint, but to do it in the Feature Race as well, with two last-lap, last-corner overtakes, was such a good feeling. ‘I really did feel a difference in myself. I came back fresher and I was feeling the grip of the car more. When your mind is fresh, you can be more aware and take in more information, and I think that helped me adapt and drive faster.’

Madrid supplied the qualifying performance that had been missing earlier in the year. David set a 1:50.023 in Qualifying 2 to take ninth, just 0.273 seconds from pole and only 0.051 behind title contender Freddie Slater. The three races themselves produced only one point, with overtaking proving difficult around the new Madrid circuit, but the qualifying result was significant.

‘It was really encouraging to be P9 and only around two tenths off pole,’ said David. ‘P9 was our best qualifying performance of the year, so I think that says a lot about the progression we made. ‘I improved again from Monza to Madrid, particularly in the feeling I had for the car and knowing how to drive it on the limit. By then I really knew what was going on underneath me and what the car needed.’

That progression is what matters most when looking back on the season. David had arrived in Melbourne trying to understand how to extract the performance of an F3 car. By Madrid, he was doing so instinctively enough to qualify within three tenths of pole.

The season also unfolded alongside A-Level exams, sponsor commitments and visits to Sri Lanka, where support for David’s international career continued to grow. On track, the results were uneven, but the strongest weekends each demonstrated something different.

Silverstone showed he could defend. Monza showed he could attack and manage a race. Madrid showed he could execute in qualifying. ‘That combination definitely changes how I look back on my rookie season,’ David said. ‘I honestly wasn’t focused on results; I was focused on the work and the process. Because I had been concentrating on that for so long, when the results came they almost felt unexpected. ‘Looking back, though, I think we put every piece of the puzzle together. We had the racecraft to defend, the racecraft to attack and manage the tyres, and the lap execution to qualify inside the top ten. We’ve shown all of those elements now, and that gives us something really strong to fight with next year.’

David is equally clear that there is more work to do: ‘This season has taught me just how hard you have to work to succeed in Formula 3. It isn’t an easy championship, and I’m willing to do everything possible to keep improving. There are still areas where I need to improve, particularly with mindset and making sure I focus on the things I can control.’

‘I’m really proud of how much I gave to this season and how hard I worked. It’s probably the first time I’ve looked back on a whole season and genuinely thought, ‘I’m proud of what I did.’ Most of all, I have to say thank you to everyone who supported me, especially everyone back in Sri Lanka. It has been a year of incredible support and encouragement, and I couldn’t be more thankful.’

Yevan David’s racing is supported by Maliban, Dimo Group, Nations Trust Bank, Fidem Financial and the Ceylon Motor Sports Club (CMSC).

Ilankai Tamil Arasu Kachchi (ITAK) Parliamentary Group Leader and Batticaloa District MP Shanakiyan Rasamanickam has called in Parliament for reforms to give local authorities modern revenue powers, adequate resources, and greater autonomy. He warned that councils are being asked to fund more of their own costs while their ability to raise income remains outdated.

Rasamanickam raised the matter last week and alleged that some local authorities are currently required to meet about 20% to 40% of their salary expenditure from their own revenue, and councils could eventually be expected to finance their entire salary bill this way by 2029.

He questioned claims that this was an International Monetary Fund (IMF) requirement, saying it was not an IMF condition as far as he understood. He warned that councils already struggling for income could become unable to function if the salary burden rises without their revenue-raising capacity also being strengthened.

He said revenue tools have not kept pace with economic realities. Some licence fees for Pradeshiya Sabhas and Urban Councils remain at around Rs. 5,000 to Rs. 6,000, and some fines are as low as Rs. 100, Rs. 150 or Rs. 500. Rasamanickam called for rates, fees, permit charges, fines, and other charges to be modernised and reviewed periodically. He also called for State legal assistance to recover unpaid rates, taxes, and rents, particularly from major defaulters.

He said several revenue-generating project proposals submitted under the Local Loans and Development Fund (LLDF) remain unapproved, even as councils are being told to increase their own income.

Rasamanickam also said that because elected Provincial Councils have not functioned since 2017, by-laws prepared by Municipal Councils since 2018 remain unapproved. He called for a legal mechanism to approve and gazette them without delay.

He raised concerns that the Kattankudy Urban Council was assessing and collecting property rates in the Manchanthoduwai ward, which falls within the Batticaloa Municipal Council area. ‘Administrative boundaries cannot be changed through tax collection,’ he said.

He also questioned the legal basis for Prajashakthi structures identifying and prioritising Local Government projects. ‘Members of a Prajashakthi committee cannot come in and perform the functions of representatives elected by the people,’ he said.

Rasamanickam also sought disclosure of central and provincial development allocations to each district and local authority in the North and East in 2025 and 2026, and of vehicles and machinery provided to councils over the past five years.

DFCC Bank has been named the Best Cash Management Bank in Sri Lanka for 2026 by The Asian Banker, recognising the bank’s growing transaction banking capabilities and its continued investment in secure, digitally enabled solutions that give businesses greater visibility and control over their financial operations.

The recognition reflects DFCC Bank’s progress in helping businesses simplify payments and collections, automate reconciliation, manage liquidity and working capital, and make more informed financial decisions.

Central to this proposition is DFCC iConnect, the bank’s integrated payments and cash management platform for corporate, multinational, and small and medium enterprise (SME) customers. The platform enables businesses to manage local and international payments, payroll, supplier settlements, collections, and account information through a secure digital environment.

DFCC iConnect also supports integration with enterprise resource planning systems, automated identification and reconciliation of receipts, real-time account visibility, customised reporting, multi-level authorization, and mobile transaction approval. These capabilities help finance and treasury teams reduce manual processes, strengthen control, and respond more quickly to changing business requirements.

Deputy CEO Shamindra Marcelline said: ‘Being named the Best Cash Management Bank in Sri Lanka is an important recognition of the proposition we have built around the real operating needs of businesses. Payments, collections, and liquidity are central to how an organisation functions every day. Our role is to make those processes simpler, faster, and more secure, while giving customers the visibility and control they need to make sound decisions. This recognition reflects the trust our customers have placed in us and the commitment of the teams who serve them.’

DFCC Bank’s cash management proposition combines digital capability with transaction banking expertise and relationship-led service. This allows the bank to understand the operational requirements of individual businesses and develop solutions suited to their transaction volumes, approval structures, reporting needs and wider financial objectives.

The bank supports large corporates, multinational organisations, Government institutions, and SMEs, recognising that businesses of different sizes require different levels of functionality, integration, and assistance.

Senior Vice President and Head of Wholesale Banking Ishani Palliyaguru said: ‘Effective cash management is ultimately about helping a business know where its money is, move it securely and put it to work more efficiently. That requires more than processing transactions. It requires real-time visibility, automation, strong controls and solutions that connect with the way each organisation operates. We have continued to develop these capabilities while working closely with our clients to reduce complexity and improve their day-to-day financial management.’

The recognition comes as businesses place greater emphasis on digitising financial processes, improving working capital efficiency, and strengthening their ability to operate through changing economic conditions.

DFCC Bank will continue to advance its transaction banking capabilities, using technology, data, and customer insight to help businesses improve efficiency, strengthen financial resilience, and keep growing.

Energy Minister Anura Karunathilaka and electricity utility officials on Saturday dismissed reports that the Government is taking steps to curtail rooftop solar power while promoting other energy sources, as consumers and the industry voiced growing concern over recent policy decisions.

Speaking at a news briefing, Karunathilaka said the allegations were baseless. He pointed to the Government’s efforts to expand solar power generation across the country, including plans to connect a further 4,585.7 MW of solar capacity to the national grid by 2029.

The concerns follow an Energy Ministry directive issued on 11 September. It replaced net metering and net accounting with the ‘Net Plus’ scheme for new rooftop solar applications. Under net metering and net accounting, households offset the power they generate against their own consumption. Under ‘Net Plus,’ all the power generated is exported to the grid and paid for, and consumption is billed separately.

According to the Minister, the Government facilitated the addition of 1,513 MW of rooftop and ground-mounted solar capacity to the national grid during 2025 and up to August 2026. Rooftop solar accounted for 1,141.1 MW of this: 938.8 MW last year and 202.3 MW in the first eight months of this year. Ground-mounted projects added a further 370 MW: 177.2 MW in 2025 and 193.4 MW up to August.

For 2027, plans are in place to add 1,392 MW of solar power to the grid: 500 MW from rooftop solar, 442 MW from small and medium-scale projects, and 450 MW from large-scale solar parks. The National System Operator (NSO), which manages the balance of electricity supply and demand on the grid, also plans to add about 1,240 MW/4,660 MWh of battery storage from 2027 to 2029. Storage is expected to become more important as the share of weather-dependent renewable power grows, because it can absorb excess daytime solar output and release it when demand is higher.

Installed solar capacity has passed 3,070 MW. Rooftop systems connected under the Net Metering, Net Accounting, and Net Plus schemes account for about 2,542 MW, and ground-mounted projects for about 534 MW. The NSO said solar meets around 15% to 25% of the country’s daily electricity requirement, depending on the weather. A further 25 to 30 MW is being added each month through projects that have already been approved.

Addressing the same media briefing, officials from the NSO said the rapid growth of rooftop solar had begun to expose technical constraints in the grid. The rooftop additions planned for 2026 have already been exceeded. As a result, electricity distribution licensees, including Electricity Distribution Lanka Ltd., EDL and Lanka Electricity Company Ltd., (LECO), are closely monitoring new rooftop solar approvals and capacity additions. The measure was described as a temporary grid-security response, not a long-term restriction on renewable energy development.

Zero-export systems, which store surplus daytime output in batteries for use in the evening and at night instead of feeding it into the grid, will not be subject to the limits.

New applications will continue to be accepted under the ‘Net Plus’ scheme. All solar applications approved before 11 September 2026 will proceed under their existing approvals, the NSO said.

Prime Marina 2, rising within Port City Colombo, is the newest marina and waterfront development by Prime and Melwa, positioned at the entrance to Port City and facing the marina and surrounding waters.

This combination of visibility, accessibility, and waterfront connection creates an address that is exceptionally difficult to replicate.

This is not simply another development within Port City. It is positioned where Sri Lanka meets its newest waterfront destination. Prime Marina 2 brings together marina-front residences, corporate suites, and curated retail spaces, complemented by contemporary architecture, refined design, and an elevated waterfront lifestyle. Here, the water is not merely a backdrop. The marina, waterfront, and promenade become part of everyday life.

In real estate, location remains fundamental to desirability and long-term value. When accessibility, visibility, waterfront frontage, and scarcity come together, the result is a proposition that extends beyond lifestyle. Within Port City, residential opportunities may continue to grow, but prime marina frontage cannot simply be created or replicated. Buildings can be added. Prime marina positions cannot.

That inherent scarcity is what gives Prime Marina 2 its distinction. With only a limited number of residences able to directly engage with the marina, its position represents a rare characteristic in the Port City landscape. Globally, scarcity has long been an important factor in the desirability of premium waterfront property and its potential for long-term value appreciation, subject to broader market conditions.

Prime Marina 2 and Prime Group Chairman Premalal Brahmanage said: ‘Prime Marina 2 is not simply the next phase of a development; it is a deliberate extension of a new category of marina and waterfront living in Sri Lanka. Our vision is to create an address defined by its marina-front position, a setting that is inherently limited and cannot be replicated. That unique position gives Prime Marina 2 its distinctive character and enduring appeal. We believe this is how Sri Lanka’s relationship with its waterfront begins to evolve, by creating places that are not only exceptional today, but remain distinctive for generations to come.’

For Sri Lankans seeking a world-class waterfront lifestyle closer to home, overseas Sri Lankans looking for a distinctive Colombo address, and investors seeking to participate in the growth of Port City Colombo, Prime Marina 2 offers an opportunity to be part of Sri Lanka’s next chapter in waterfront living just for an unbelievable price of Rs. 59 million onwards.

When location is rare and opportunity is limited, being at Prime Marina means belonging to an exclusive community of Marinaires, connected by an address that cannot be replicated.

A proposal for a fuel subsidy of Rs. 41 billion covering the next three months will be presented to Cabinet today (28), with a decision expected, as world oil prices climb again following a renewed escalation of the US/Israel-Iran war.

The Government said Rs. 41 billion had been allocated for fuel subsidies for the next three months so that the burden of high world market prices would not be passed fully on to the public.

The new allocation is smaller than the previous scheme. After the prices of all petroleum products rose rapidly in March, the Government said it spent Rs. 57 billion subsidising diesel by Rs. 100 a litre and petrol by Rs. 20 a litre in April, May, and June. The Rs. 41 billion works out to about Rs. 13.7 billion a month, compared with about Rs. 19 billion a month under the earlier subsidy.

According to the Government, the world market price of diesel, which rose 115% in March compared with February, eased to 39% above February levels by the end of June. That relief was passed on to consumers in July, when the diesel price was cut by Rs. 25 a litre without a Government subsidy. World petrol prices, which rose 71% in March, fell back to 43.2% above February levels by the end of June, and the relief was likewise passed on. Domestic petrol prices were cut again as world prices fell further in July and August.

However, the Government said world prices of petrol, diesel, and crude oil had risen rapidly since August as the war in the Middle East escalated seriously. Diesel is now 92% higher than in February, petrol 78%, and Murban crude 66%, while domestic petrol and diesel prices are only 36.2% and 35.9% higher, respectively, it said.

Price data reviewed by the Daily FT show the same trend. The average Singapore price of 92-Octane Petrol for September to date is $ 134.50 a barrel, 21.3% higher than August, 78.7% above February’s pre-war average of $ 75.28, and the highest monthly average this year. Singapore prices are ‘free on board’ (FOB), meaning they reflect the cost of fuel loaded onto a tanker, before freight, and are a regional benchmark for fuel import costs. A barrel is about 159 litres.

Diesel benchmarks show a similar gap. Gas oil with 500 parts per million (ppm) sulphur averaged $ 170.99 a barrel in September, up 10.9% from August and 92.5% above February. Higher-grade 10 ppm gas oil averaged $ 178.48, 98, 5% above February. Jet fuel was up 90.2% at $ 169.32.

Local pump prices have risen far less. Following the last revision on 31 August, Lanka Petrol 92 Octane sells at Rs. 399 a litre, 36.2% above the pre-war price of Rs. 293. Lanka Petrol 95 Octane is Rs. 475, up 39.7% from Rs. 340. Lanka Auto Diesel is Rs. 382, up 35.9% from Rs. 281. Lanka Super Diesel is Rs. 478, 45.3% higher than Rs. 329.

The 31 August revision cut Petrol 92 to Rs. 399 from Rs. 414, and Petrol 95 to Rs. 475 from Rs. 495, while diesel prices were unchanged. Since then, Singapore petrol benchmarks have risen by more than a fifth.

Pump prices were raised in several steps after the war began, with increases of 7% to 8% on 10 March, a second round on 22 March, and further hikes on 3 May and 31 May. The 31 May revision took Petrol 92 to its peak of Rs. 434 a litre, 48.1% above pre-war levels, and Auto Diesel to Rs. 407, up 44.8%. The 30 June revision cut Auto Diesel by Rs. 25 to Rs. 382 and Petrol 92 by Rs. 20 to Rs. 414.

Benchmark prices peaked earlier. Singapore gas oil and jet fuel more than doubled in March and April, with 500 ppm gas oil averaging $ 191.73 a barrel in March, 115.8% above February. They fell back to about 40% above pre-war levels in June, before rising again from July.

Six project companies of renewable energy developer WindForce PLC have submitted winning bids to add a combined 28 MW/144 MWh of battery storage to their existing solar plants. WindForce’s equity investment is estimated at about Rs. 944 million.

WindForce said the bid prices fell within the winning bid threshold. The companies bid under a call for proposals to establish 150 MW/600 MWh of Battery Energy Storage Systems (BESS), meaning large batteries that store electricity for release later.

The systems are to be integrated with existing ground-mounted solar photovoltaic (PV) plants and developed on a Build, Own and Operate (BOO) basis for 15 years.

The MW figure is the maximum power the batteries can deliver at any moment, and the MWh figure is the total energy they can store. The six projects together total 28.25 MW/143.75 MWh, equivalent to 24% of the energy storage capacity sought under the tender.

Five of the companies were allocated 4.9 MW/25 MWh each: Solar Universe Ltd., 50% owned by WindForce; Sooryashakthi Ltd., 50%; Solar One Ceylon Ltd., 50%; Kebitigollewa Solar Power Ltd., 88.5%; and Vydexa Ltd., 76.13%. Wholly owned Diya Janani Ltd., was allocated 3.75 MW/18.75 MWh. Based on those stakes, WindForce’s proportionate share is about 19.2 MW/97.4 MWh.

Solar Universe and Sooryashakthi are also 50% owned by Vidullanka PLC.

‘While the formal award of the projects is still pending, the Board of Directors considers this development to be price-sensitive information, given its relevance to the company’s future operations, potential project portfolio expansion, and long-term financial outlook,’ WindForce said.

The company said it would make further disclosures when the formal awards are received, the relevant agreements are signed, or other material developments occur in the tender. It added that the bidding outcome remains subject to the final award process, regulatory approvals, and the signing of agreements, and should not be taken as confirmation of the contract awards.

Vallibel Finance has expanded its geographical presence across Sri Lanka with the opening of two new branches in the North Central Province: Anuradhapura City (2nd Branch in Anuradhapura) and Bakamuna. This strategic expansion underscores the company’s ongoing commitment to improving financial inclusion, increasing accessibility to its services, and fostering inclusive economic growth throughout the country.

The newly opened branches are expected to improve customer convenience by providing faster and more accessible financial solutions to individuals, entrepreneurs, and businesses within North Central Province. The opening of second branch in Anurdhapura marks a significant milestone in Vallibel Finance’s strategic growth journey, particularly within the Anuradhapura District, where the company continues to deepen its engagement with local communities while supporting regional economic progress.

The two new branches were ceremonially inaugurated by Vallibel Finance Managing Director Jayantha Rangamuwa, in the presence of members of the Corporate Management, employees, valued customers, and well-wishers.

Rangamuwa emphasised the company’s dedication to expanding its presence across the North Central region while serving communities with inclusivity, professionalism, and respect for the area’s unique cultural and social values. He noted that Vallibel Finance remains committed to building long-term relationships that positively contribute toward community empowerment and regional development.

Through its expanding branch network, Vallibel Finance continues to offer a comprehensive portfolio of financial solutions including Leasing, Fixed Deposits, Gold Loans, and Auto Draft facilities. Backed by modern technological infrastructure and customer-centric service standards, the company aims to deliver seamless and efficient financial services tailored to the evolving needs of customers.

A defining achievement in Vallibel Finance’s journey was surpassing the Rs. 200 billion asset milestone within just 19 years, reflecting its accelerated growth, financial strength, and strategic resilience. This follows another significant milestone achieved in December 2024, when the Company became the fastest finance company in Sri Lanka to exceed the Rs. 100 billion asset threshold, achieving this within 17 years of operations.

With the inauguration of these new branches, Vallibel Finance reaffirms its commitment to expanding financial inclusion, empowering local communities, and supporting sustainable economic growth across Sri Lanka through innovative and reliable financial solutions.

Drug shortages in public hospitals in Sri Lanka has been an endemic problem for decades and the reasons for this are many and varied. Political interference, bureaucratic ineptness, funding shortages, policy issues, structural issues, private interests of medical practitioners in Government service, the lobbying and marketing practices of the pharmacy industry, and more, have all contributed to a greater or lesser degree to these shortages from time to time.

This article attempts to outline a conceptual framework to address this vexed issue. It is a framework that looks ahead rather than looking back to addressing issues on a piecemeal basis, as has happened time and again, and unsuccessfully as reports seem to indicate. The discussion is about a mindset change that is needed to address this issue as previous attempts have had limited and inconsistent results. The mindset change requires readers to consider options outside the ‘box’ so to speak, and think laterally as to how best drug shortages may be addressed. In order to address this long-standing issue, this article proposes the establishment of a

Peak Drug Demand Estimation Secretariat (PDDES)

Peak Procurement Secretariat (PPS) and Transformation of the role of the State Pharmaceuticals Corporation

At a very fundamental level, there are obviously two sides that contribute to shortages or even excesses of drugs, and that is the supply side. And the demand side. Ideally, if everything worked well, supply would equal demand and there should not be shortages or excess supply.

Broadly, the supply side usually depends on efficiency while the demand side depends on effectiveness. This is not to say that both sides need to be efficient and effective, but looking at a hypothetical situation, a very fundamental difference can be elaborated. Say if the demand has been estimated as 100 units and a very efficient supply operation delivers the 100 units exactly on time, at the right quality, quality and at the right place, but if the estimated demand had not been computed accurately, and either its more than 100 units or less than 100 units, then the efficiency of the supply operation becomes irrelevant to the desired outcome as either there will be a shortage or an excess supply. The effectiveness of the demand estimate is what matters then, and based on this very simple premise, effective computation of demand takes precedence over an efficient supply operation, although the latter is also a very important component of the supply chain.

This concept is framed around what perhaps can and should be done to address drug shortages. It is not a simplistic approach, and it will require a major shift in thinking and attitudes. Considering the precedence of demand computation over supply operations, possible approaches to make demand more effective are discussed first.

Sri Lanka spends around Rs. 141 to Rs. 164 billion (at today’s exchange rate) for importation of drugs intended for the public sector via the State Pharmaceuticals Corporation and around Rs. 25 billion via the State Pharmaceutical Manufacturing Corporation. It has approximately 1300 distinct items on its drug list. Accurate estimation of demand for these is not an easy task. Demand may be computed using usage data and also past purchases. Both pose a problem as usage data may be understated or overstated and past purchases done using such data would be inaccurate. In all instances, using morbidity data, derived from patient categorisation or classification that is done as a routine in all hospitals on a daily basis, and medicine prescribed and issued to them would be data verification information that can and should be used to substantiate data derived from other routine methods. It is also understood that based on information sourced directly from some patients, there is a practice to over prescribe drugs to a patient if that patient mentions another ailment in addition to the ailment he or she has for which a routine monthly or bimonthly clinic is attended by that patient, rather than being investigated and a diagnosis made first. A particular patient mentioned that he takes 15 different medicines every night.

Depending on how widespread this practice is, it could affect demand very substantially and result in drug shortages as some of this would be unforeseen or unplanned demand on some drugs. Drug shortages may also be reported as shortages when doctors prescribe drugs that are not stored in some or all public hospitals and which have to be sourced from private pharmacies. The above-mentioned factors and others not noted here indicate the complexity of demand estimation, and the difficulty in making accurate estimations.

It also shows that the process relating to demand estimation involves many players and internal and external factors and the need to consider a very specialised task that requires greater expertise, and the use of today’s technology that is evolving very rapidly.

In respect of the supply side of the equation, procurement management plays a major part in the supply chain, and two radical proposals are made below in respect of demand estimation and procurement management. In order to address both sides of the equation, the following are suggested.

Establishment of a Peak Drug Demand Estimation Secretariat (PDDES)

It is suggested that the Health Minister considers establishing a high level expert entity within the department of health to undertake the task of drug demand estimation, and for such an entity be supported by local and international expertise, to map out, develop necessary policy and procedural requirements, use of appropriate technology, carry out the task of demand estimation, and monitor actual usage against the demand estimates so that timely action may be taken if supply shortfalls are foreseen. Such an entity is termed as the Peak Drug Demand Estimation Secretariat (PDDES) to reflect its critical nature as the peak body responsible for the task of drug estimation. If this body is to perform their tasks efficiently, effectively and deliver the desired results, it needs complete authority to make decisions pertaining to processes relating to drug estimation.

What is suggested is not another bureaucratic entity filled with staff, but an entity that relies on technology as a tool to undertake this staff. Development of appropriate artificial intelligence algorithms and digitalisation of information collection, flow and analysis would be an essential component of the proposed entity. In order to prioritise and plan the roll out of a strategy to achieve the desired outcomes, the VEN classification (Very essential, essential and non-essential) categorisation of drugs could be used to introduce the proposed demand estimation process in a staged manner.

Establishment of a Peak Procurement Secretariat (PPS)

Presently, the State Pharmaceuticals Corporation (SPC) is understood to be the entity that undertakes procurement imports on behalf of the public sector in Sri Lanka. These procurements are based on demand estimates submitted by the State Medical Stores. Various reports indicate issues associated with the procurement process, such as tender process delays, and funding shortfalls and delays. Besides the procurement process, the SPC is also responsible for importing drugs for the private market, a role they share with private sector importers, and the logistics process of consignment clearance and delivery to the State Medical Stores, and the storage of drugs for the private market (via private pharmacies) and distribution of drugs to the State run Rajya Osu Sala’s, or State retail outlets. Leaving the logistics side of the SPC mandate aside, it appears that the procurement process is yet another operational responsibility of the SPC carried out without a strategic vision or more modern approaches relating to best practice. In order to achieve this objective, it is suggested that an independent State entity is established outside the SPC, and as an independently managed entity, to undertake the procurement process. Hence the setting up of a Peak Procurement Secretariat (PPS).

Current tender procedures for importation of drugs are long and require a lengthy lead time from planning the importation to actual receipt of quality assured drugs in the warehouses of the State Medical Stores or SPC’s own warehouses. It is estimated that this period is around 9 months if not more. A long lead time immediately translates to carrying more stock physically to meet the demand for the drugs until new stocks arrive and also involves carrying buffer stock to meet potential shortfalls in supply due to delays. Typically, if a three-month buffer is added to the stock needed to cater to the lead time of 9 months, the total stock held equates to 12 months stock. In a situation where demand estimates have not been accurate as one anticipated, stock outs for varying periods become inevitable consequences.

Until Sri Lanka becomes more self-sufficient in locally manufactured drugs by the State Pharmaceutical Manufacturing Corporation (SPMC) and private sector manufacturers, the dependency on imports (around 85% of the requirements) will continue for the foreseeable future, and strategies for improved procurement will have to consider a range of options. It is felt that examining these options should be the task of the proposed body which should have the expertise to do so, supported by local and international technical assistance.

Some strategies that should all be carried out through a competitive and open process,

Establishment of long-term contracts for a select number of drugs with manufacturers where the initial lead time could be reduced from nine months, and where the overall lead time could be reduced by establishing contracts for periods up to 3 to 4 years.

Once contracts are established, the lead time is restricted to the time span for actual shipment by an overseas manufacturer over the contract period of 3 to 4 years.

Establishment of Period contracts for a select number of drugs where prices, and one or more suppliers, are established for a range of drugs for a period of 3 years, where the PPS could place purchase orders as and when needed with suppliers on period contracts and at the prices noted in such contracts.

Over time, when hospital budgeting is devolved and allocations are provided to them to purchase drugs, they could be given the authority to purchase all or some of their requirements from suppliers in the period contracts and at the prices noted in the contracts. This is a longer-term proposition, and it could be discussed and appropriate policy submissions made to the Minister for Health by the PPS.

The expertise and the independence of the Peak Procurement Secretariat will facilitate the development and execution of the above mentioned strategies and other appropriate ones that would improve the supply side of the equation by introducing more certainty to the procurement process, reduction of the lead time, reduction of stock holdings and ability to respond quicker to unforeseen/unplanned changes to demand estimates, and importantly, be able to respond more expeditiously to potential stock out situations.

Role of the State Pharmaceuticals Corporation

The above-mentioned change to the procurement process will necessarily impact on the SPC as they will not be responsible for this process any longer. It is suggested that their role is transformed into a logistics operation where they undertake the clearance of cargo, warehousing (for the private sector) and distribution to the Rajya Osu Sala’s. The State Pharmaceuticals Corporation was established in 1972 when technology was different and consequent to the policy position of the then Government. Circumstances are different today and technology has moved a considerable distance from that time. While the procurement strategies suggested do not take away one of the key principles associated with the SPC, that is, ensuring the best and lowest prices are obtained through an open and competitive process, it ensures the public sector gets the best and lowest price for drugs, and it takes note of today’s reality that the private sector is a partner in the drug supply industry of the country, and they are also subject to maximum prices set by the Ministry of Health for some drugs. In order to provide a choice to the public, whether they should buy from a Rajya Osu Sala or a private pharmacy, it is suggested that more Rajya Osu Sala’s are opened throughout the country in addition to the existing number which is reported as 43 outlets.

Conclusion

The task of accurate drug demand estimation is not an easy task in more than 1,500 public healthcare institutions and in local clinics, regional storage facilities, and individual dispensaries, managing drug stocks across over 2,900 locations countrywide. These include large national hospitals, teaching hospitals, and specialised institutes (e.g., Apeksha Cancer Hospital or Lady Ridgeway Children’s Hospital), Provincial General Hospitals, District General Hospitals, and Base Hospitals, hundreds of smaller Divisional Hospitals and Peripheral Units scattered across rural sectors. primary and preventive Healthcare Facilities like smaller village-level clinics that stock essential everyday medicines for outpatient care, and MOH Offices that stock specialised preventive medicines, maternal healthcare supplies, and national immunisation program vaccines. Besides these, the planned Arogya Health facilities, 1000 of them over 3 years, will add a further complexity to the already difficult demand estimation process.

Accurate and appropriate demand estimation is very complex, but paramount in a centralised drug supply situation dependent on imports, and this has to be managed with limited funds available to the State. Appropriateness of the demand becomes very important here and the use of up-to-date patient treatment guidelines to standardise the diagnosis and prescription of drugs and linking this to patient (or morbidity) information is vital to compute demand estimates.

The specialised entities suggested for demand estimation and procurement should be options that need consideration as strategies to address drug shortages. Long term contracts and period contracts are not new phenomena as they are in practice in several countries. Besides improving the procurement process, they also help manufacturers as they have certainty of purchases by the buyers for the period of the contract. This leads to better and consistent pricing as well. The challenge now is to see how many will be willing to look at things as they never were, and ask why not?