ECONOMYNEXT – Sri Lankaâ€s pharmaceutical sales are starting to grow, recovering from a currency crisis in 2022, Hemas Holdings Plc, a group involved in pharma and consumer goods said.
The expansion was driven by lower priced items, including diabetic drugs and vitamins.
“During the quarter under review, the pharmaceutical industry experienced volume growth, for the first time since the economic crisis in the year 2022,†the firm told shareholders in the September quarter review.
“This increase was largely attributed to local manufacturers and low-cost products, particularly in categories such as diabetic drugs and vitamins.
“This trend highlights a shift in consumer preference toward more affordable pharmaceutical options.â€
Following the last currency crisis, arguably the worst in the history of Sri Lankaâ€s soft-pegged central bank, a large section of the population was driven into poverty and were forced to adopt ‘coping mechanisms.â€
Sri Lanka has seen four back-to-back currency and stabilization crises since the end of a civil war which progressively depreciated the currency from 113 in 2011 to 360 to the US dollar in 2022 as rates were cut with inflationary open market operations to boost ‘growth†(potential output).
Since late 2022 the central bank has provided monetary stability and also appreciated the exchange rate amid deflationary policy, helping bring down prices. Over the past year rupee has been allowed to appreciate to 293 to the US dollar. (Colombo/Nov11/2024)
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