Cabinet Decisions

Measures taken to ensure procurement of pharmaceuticals to hospitals on time

The Cabinet decided to introduce a systematic procurement process to ensure the timely delivery of medical supplies to hospitals on a recommendation by Health Minister Maithripala Sirisena. A Cabinet Sub - Committee headed by Senior Minister Prof Tissa Vitharana has been appointed by the Cabinet to make recommendations on the procurement and supply process relating to pharmaceuticals to ensure a smooth supply of pharmaceuticals in adequate quantities to government hospitals. A Procurement Planning Committee consisting officials has also been appointed to assist the Sub-Committee. The Cabinet granted approval to the proposal made by Health Minister Maithripala Sirisena to implement the recommendations made by the Cabinet Sub - Committee. Arrangements are to be made for the distribution of drugs to hospitals, through the networ k of 27 sales outlets belonging to the State Pharmaceuticals Corporation.

GOVT OWNED COMPANY TO BE FORMED FOR POULTRY SECTOR DEVELOPMENT

The Cabinet decided to form a fully government owned company named Sri Lanka Poultry Development Company (Pvt) Ltd to support the poultry industry. This is following a proposal by Livestock and Rural Community Development Minister Arumugam Thondaman.

The National Livestock Development Board (NLDB) will purchase 49 percent of the shares of LANLIB which is a joint venture between a company in Libya and the NLDB, for the formation of this company

EURO 21 M FROM NETHERLANDS TO UPGRADE PERIPHERAL BLOOD BANKS

The National Blood Transfusion Service provides blood to government hospitals and the majority of private sector hospitals in the country. It has 15 clusters and 60 hospital based blood banks. The proposed project aims to develop infrastructure facilities and provide urgently needed equipment for 19 peripheral centres and essential equipment for blood banks. The proposal made by Health Minister Maithripala Sirisena on the recommendation of the Cabinet Appointed Negotiating Committee to award the contract to a company in Netherlands at Euro 2.1,237,254.00 was approved by the Cabinet.

FLYOVER AT VEYANGODA RAILWAY CROSSING

The Cabinet approved a proposal by the President, as the Finance and Planning Minister, to enter into a loan agreement with a bank in Spain for financial assistance to construct the flyover at the Veyangoda railway crossing.

PROJECT FOR IMPROVEMENT OF BASIC SOCIAL SERVICES IN DEVELOPING REGIONS

The Japanese government has agreed to provide a loan of Japanese Yen 3,935 million through JICA to improve basic social services in developing regions in the country. The following are to be implemented under this project: Expansion of the production capacity of State Pharmaceuticals Manufacturing Corporation, four new manufacturing machines along with other processing machinery are to be installed to enhance the production of tablets up to 4,000 million per annum to meet the government requirement, strengthening secondary hospitals and providing modern and quality care services, selected secondary hospitals in the Central, Sabaragamuwa, North Western and North Central Province are to be upgraded with facilities to function as core hospitals in the region.

In addition, 124 ambulances are to be provided to hospitals in the Central, Sabaragamuwa, North Western, North Central, Uva, Eastern and Northern Provinces.

The proposal made by the President. in his capacity as the finance and planning minister, to enter into a loan agreement with JICA, was approved by the Cabinet.

Japan grants Rs 70 m for improvement of Japanese language learning at Kelaniya and Sabaragamuwa Universities

The Japanese government has agreed to provide grant assistance in Japanese Yen 48,400,000 (approximately Rs.70,180,000) through JICA, to improve Japanese language learning in Sri Lankan universities.

The proposal made by the President, in his capacity as the finance and planning minister, to enter into a grant agreement with JICA was approved by Cabinet.

JAPAN GRANTS RS 420 M FOR PROVISION OF INDUSTRIAL PRODUCTS

The Japanese government will provide a grant assistance in Japanese Yen 300 million (approximately Rs.420 million) through JICA to procure industrial equipment produced in Japan, to promote economy and social development in Sri Lanka. The grant assistance will be utilized for the procurement of the following: Medical equipment - will be provided to teaching hospitals, secondary hospitals and medical research institutes, to improve existing facilities; water purification equipment - will be used to provide safe drinking water to the people living in areas where there is a scarcity for water and areas affected by disasters; excavators - will be provided for provincial and rural road development activities. The proposal was made by the President, in his capacity as the finance and planning minister to enter into a grant agreement with JICA, was approved by the Cabinet.

RS 982 M GRANT FROM JICA FOR REHABILITATION OF KILINOCHCHI WATER SUPPLY SCHEME

The Japanese government has agreed to provide grant assistance in Japanese Yen 677 million (approximately Rs 982 million) through JICA for rehabilitation of the Kilinochchi Water Supply Scheme.

Under this project, it is expected to construct a new water intake, a raw water transmission line from the intake, a water treatment plant and two water towers at Kilinochchi and Paranthan.

A distribution pipeline covering approximately 42 kms will be constructed to distribute water to Paranthan and Iranamadu benefiting over 20,000 people living in 14 Grama Niladhari divisions in the Kilinochchi district. The proposal made by President, in his capacity as the finance and planning minister to enter into a grant agreement with JICA, was approved by the Cabinet.