Drug companies may take a hit, too

Indian pharmaceutical firms are looking at a potential write-off of their receivables from Sri Lanka, as they’re struggling to repatriate cash from the South Asian island nation which is dealing with extreme greenback crunch and a devaluation of native foreign money as a result of ongoing financial disaster.

One in every of India’s main drug maker

mentioned it took a cost of round Rs 40 crore in Q4FY22 on its foreign exchange line, on account of receivables from Sri Lanka.

“We’ve got the cash in Sri Lanka, however we will not repatriate it due to foreign money causes, that is between our subsidiary and us, so our numbers have taken a cost of Rs 40 crore, as a result of the foreign exchange charges have modified from the time the cash is because of us to the scenario now, so these expenses will maintain coming,” mentioned Umang Vohra, MD and International CEO of Cipla.

One other government of a drug firm with publicity to Sri Lanka who’s dealing with comparable points, mentioned he’s ready for the federal government to behave rapidly so they are going to have the ability to proceed transport medicines to Sri Lanka. “The federal government has introduced extending the $1 billion credit score line, however we nonetheless do not know easy methods to avail it,” the manager mentioned.