Approval has been granted at the cabinet meeting held on 29-11-2013 to purchase the locally produced medicines under the Buy Back Agreement in order to encourage the local medicine producers by giving priority for the production activities of the State Pharmaceuticals Corporation of Sri Lanka. Accordingly, approval has been granted on 02-10-2018 in order to enter into buyback agreements for the productions of local medicine manufacturing companies who have already entered into agreements with the State Pharmaceuticals Corporation of Sri Lanka for the 15-year period, to purchase the said medicines on a priority basis provided for the State Pharmaceuticals Corporation of Sri Lanka, and to implement buyback agreements between local medicine producers and the Ministry of Health for the supply of medicines for up to 10 years. Accordingly, a pricing committee has also been appointed to determine the prices of the medicines. According to the strategy of purchasing the said medicines, it has been recognized that 20% of the requirement of medicine supplies is covered by the present strategy of purchasing the said medicines, and there is a possibility to increase the said amount up to 40%. Accordingly, the Medical Supplies Division of the Ministry of Health has identified 49 local medicine manufacturing companies that have the capability of supplying 454 medical supplies, including medicines. Accordingly, the Cabinet of Ministers has approved the proposal presented by Hon. Prime Minister in her capacity as a Minister of Health in order to enter into buyback agreements to supply medical supplies, including local manufacturing medicines, from such identified institutions for a period of one year without being perverse to the local medicine manufacturing companies that have already been entered into buyback agreements as well as the manufacturing procedure of the State Pharmaceuticals Corporation of Sri Lanka.