The government is set to establish one-year buyback agreements with 49 local medicine manufacturers. This decision, approved by the Cabinet of Ministers, follows a proposal from Prime Minister Harini Amarasuriya and aims to enhance the supply of 454 essential drugs within the national supply chain.

This initiative builds on existing partnerships with local suppliers already engaged in buyback agreements through the State Pharmaceuticals Corporation (SPC). The government plans to increase the share of locally produced medicines from 20 percent to 40 percent, thereby reducing reliance on imports.

Originally launched in 2013, the buyback agreement strategy has been extended multiple times, most recently in 2018, to support domestic manufacturing efforts. A specialized pricing committee has also been established to ensure fair pricing for the medicines provided by local producers.