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17 mn. loss after SPC awarded Tender to highest bidder

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The State Pharmaceuticals Corporation (SPC) has lodged a complaint with the Ministry of Health (MoH) over the purchase of 38,000 Dinoprostone 3mg vaginal tablets from a supplier who quoted a higher price.

This pharmaceutical order was called under tender number DHS/P/WW/254/25.

Klintas (Pvt) Ltd., the lowest bidder, quoted a price of Rs.1,190.00 per tablet, amounting to a total of Rs.45 million.

Meanwhile, Nabiqasim, a Karachi-based company in Pakistan, offered a price of Rs.1,628.54 per tablet, totaling Rs.61 million.

Klintas (Pvt) Ltd., the lower bidder, has pointed out that the tender board awarded the contract to Nabiqasim, despite it being the highest bidder.

Accordingly, the decision had resulted in a financial loss of Rs.17 million.

The SPC usually ensures drug quality before registering them with the National Medicines Regulatory Authority (NMRA), as part of the tender awarding process.

The approval for this particular tender was reportedly granted by the Managing Director of the SPC.

The complaint has been forwarded to Deputy Health Minister – Hansaka Wijemuni, Health Secretary Dr. Anil Jasinghe, and SPC Chairman – Manuj Weerasinghe.

The initial complaint was filed on February 18th, and due to a lack of investigation or response, a reminder was sent on March 06th.

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CAA confiscates Keeri Samba stocks worth over Rs. 3.8 mn.

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The Consumer Affairs Authority (CAA) has confiscated a stock of Keeri Samba rice worth over Rs. 3.8 million.

 The stocks were officially seized today (March 18) following a legal case against two shop officials in Colombo 12.

On February 11, the Colombo Chief Magistrate’s Court (No. 5) fined shop owner Abdul Jabbar Mohamed Siyas and manager Kuruppan Murugayya Rs. 10,000 and Rs. 20,000, respectively, after they pleaded guilty to hoarding rice. 

The case was filed after a raid conducted by the CAA revealed that the shop falsely claimed to be out of Kiri Samba rice, despite hiding 3,000 five-kilogram packs on the premises.

Under the Consumer Affairs Authority Act, when a retailer is found guilty of falsely declaring goods unavailable, the court has the authority to confiscate the stock.

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Protest against selling sick cattle at Lonach farm for beef

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Workers of Lonach Farm in Watawala, Ginigathhena, had staged a protest demonstration on March 14, alleging that the farm management was selling tainted beef to butchers in the area.

The farm is operated by Watawala Dairy Pvt. Ltd. It is a subsidiary of Sunshine Holdings, which was recently embroiled in controversy after it was revealed that they had sold a drug to the Ministry of Health at a massive rip off price in 2023.

They accuse that the tainted meat was that of ailing cattle that were either dying or dead.

Although the farm had previously taken measures to properly dispose of carcasses when animals had died from diseases, under the current management, tainted meat is currently ending up at local butcher stalls, putting the community at risk, they point out.

Two truck loads of such ailing cattle had been taken to the slaughterhouse in the Bogawantalawa new town area during the wee hours of March 14 with one truck caught red handed by the workers.

The workers say that the cattle was transported by the management by altering the date of a cattle transport permit, which was previously set for March 12.

Police officers from Norton Bridge, who had arrived at the venue of the protest, had inspected the truck stopped by the workers. Upon the request of the police officers, the animals inside were taken back to the farm.

An investigation has been initiated after workers had photographed the rest of the cattle taken to the slaughterhouse and informed the police and PHI.

Background of Lonach Farm

Built by Watawala Dairy Limited (WDL), Lonach is a state-of-the-art dairy farm which is a wholly-owned subsidiary of Watawala Plantations.

A Board of Investment (BOI) registered project, it is situated on a 50-hectare site in Watawala, Ginigathhena.

The project commenced in March 2016 as a pilot project called ‘Lonach Farm’ with 120 cattle, three cow houses and a milking parlour.

Watawala Dairy Limited imported 246 heifers directly from Australia and New Zealand in 2018, and 928 cows were purchased from the Government of Sri Lanka in 2017 at a concessionary price under an agreement to develop the local dairy industry. However, much of the heifers imported in this manner at a concessionary price had contracted illnesses such as hoof diseases, sparking much controversy back then.

However, much of the heifers imported in this manner at a concessionary price had contracted illnesses such as hoof diseases, sparking much controversy back then.


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Imported milk powder prices to be upped from April

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Powdered milk food importers have decided to increase the prices by 4.7% with effect from April 01, 2025.

Accordingly, the price of a 400-gram packet of imported milk powder is expected to increase by around Rs. 50.

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