By the beginning of the 21st Century, Sri Lanka had approximately 9,000 registered medicinal drugs, hundreds of which were non-essential, unnecessary, highly expensive or even dangerous.
It anticipated that the implementation of the NMDP could reduce the number of drugs imported, prescribed and sold in Sri Lanka to about 350 varieties.
Consultations were held with all stakeholders, presided over by Prof. Krisantha Weerasuriya, the World Health Organization (WHO) Regional Advisor, Essential Medicines over four days in June 2005, and the draft for the NMDP was prepared.
In February 2006 the Health Ministry called another meeting of all stakeholders and the Minister gave assurances that the NMDP would be implemented within weeks.
In October, the Cabinet approved to a Memorandum submitted by Healthcare and Nutrition Minister Nimal Siripala de Silva on the establishment of the National Medicinal Drug Authority (NMDA) and granted its approval to draft a new Act with the assistance of the Legal Draftsman to expedite the implementation of the NMPD by repealing or amending the existing Cosmetics Devices and Drugs Act where necessary.