Sri Lanka, Oct. 25 -- An audit report has revealed major financial lapses at the State Pharmaceuticals Corporation (SPC), including losses from overpriced medicine purchases and failure to recover money from suppliers.

The report says that when 13 types of medicines were bought for SPC pharmacies, the Central Purchasing Unit (CPU) had paid prices 12% to 425% higher than what the main SPC division paid. This caused an extra cost of Rs. 10.2 million.

In response, the SPC stated that medicines are procured from the local market through the CPU Division, while a limited quantity of medicines must occasionally be obtained from this division to prevent shortages within the pharmacy network. "Failure to do so could result in a collapse of the ...