Sri Lanka's Health Ministry has opted to replace its controversial inventory management system, previously developed by EWIS at a staggering cost of LKR 644 million, with a more cost-effective alternative called 'Swasthayy.' This decision comes after revelations in a COPE (Committee on Public Enterprises) hearing last year exposed the exorbitant expenses associated with the former system.

The Health Ministry's Medical Supplies Division (MSD) and the State Pharmaceuticals Corporation (SPC) faced scrutiny during the COPE hearing, where it was disclosed that they had spent LKR 644 million on an inventory management software that took seven years to develop and implement.

Dr. Saman Rathnayake, Additional Secretary of the Ministry of Health (MOH), revealed that the new system, 'Swastha,' was developed by Loons Lab at a significantly reduced cost of LKR 102 million, inclusive of a three-year maintenance fee. The objective is to connect all 1,151 hospitals to this unified platform.

Approximately 650 hospitals out of the total have already been linked to 'Swastha.' While the software development phase is completed, some hardware and connectivity aspects are still pending. Sri Lanka Telecom (SLT) has committed to providing connectivity to all hospitals by the end of the year.

'Swastha' is accessible to the public as a website, providing information on all drugs available in the country and categorizing their availability by district and hospital. This web-based system marks a significant departure from the previous 'Pronto' system, which was based on Australian software and had limitations in terms of scalability and flexibility.

One noteworthy feature of 'Swastha' is its ability to maintain individual patient medical purchase histories. This enhancement promises improved drug inventory management and a more comprehensive understanding of patient-specific medication needs.

The previous system developed by EWIS, based on Pronto Australia's Enterprise Resource Planning (ERP) software, faced criticisms during the COPE hearing. It was highlighted that the software's limitations led to an outdated inventory, rendering it ineffective for the institutions involved in drug procurement and supply.

Questions also arose regarding the estimated LKR 7 billion needed to upgrade EWIS's software to meet current requirements. A Request for Proposal (RFP) by the SPC in 2021 revealed extravagant requirements, further fueling skepticism about the software's capabilities and costs. The transition to 'Swastha' signals a cost-effective and more efficient approach to inventory management within Sri Lanka's healthcare sector.