SPC incurs Rs.190 mn. loss due to defective medicines



The State Pharmaceuticals Corporation (SPC) of Sri Lanka has suffered a loss of over Rs.190 million in 2020 and 2021 due to quality failure, expiration and damage of some of the medicinal drugs purchased, a report issued by the National Audit Office said.

According to the report, a stock of medicinal drugs worth more than Rs.210 million from the medicinal drugs purchased as of January 1, 2021 was either expired or damaged.

The Audit Office said that out of the medicinal drugs purchased by the SPC in 2021, a stock worth nearly Rs.130 million has been identified as defective, expired and damaged.

It said that more than Rs.20 million is yet to be collected from the suppliers for a stock of medicines worth over Rs.40 million which were identified as defective in 2020 and 2021.

In the meantime, the SPC had kept 28 containers related to 28 indents imported in 2021 and 2022 in a private warehouse for six months from August 20, 2021 to February 21, 2022. The SPC has paid more than Rs.48.2 million for the warehouse, but this additional cost incurred by the corporation had not been reimbursed from the Medical Supplies Division.

The audit report showed that the SPC had to store these stocks of medicines in a private warehouse due to the lack of storage facilities in the Medical Supplies Division’s warehouse complex.

This audit report was attached in the 2021 Annual Report of the SPC which was recently submitted to Parliament.



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