President Gotabaya Rajapaksa has issued instructions to use the Rs. 1.8 billion in the COVID-19 Fund to purchase essential medicines.
The money was received from donors during the coronavirus pandemic.
The Head of State said the funds can be utilised to meet health requirements as the pandemic is now under control.
He said that 234 types of medicines required for hospitals are being manufactured locally and due to the brisk hike in prices of medicines in the world market, the production will be expedited.
There are 12 investors who have come forward to manufacture drugs centred in Oyamaduwa and Millewa, Horana. Production is expected to commence in the next few months with the potential to produce more than 200 types of drugs.
He added that the Ministries of Samurdhi and Education are planning to provide nutritious meals to primary school children and expectant mothers.
The importation of medicines and medical equipment is being funded through several sources and plans have been made to allocate funds from the proposed budget for this purpose.
Officials noted that the health sector will be able to recover within the next three months based on the current progress.