Well-known Sri Lankan businessman Harry Jayawardena is reportedly spearheading efforts to acquire Nawaloka Hospital, which has been declared insolvent and is currently under the ownership of Hatton National Bank due to defaulting on a loan amount of 63 crores.
Sources within the business community suggest that Jayawardena is seeking to purchase Nawaloka Hospital at a significantly reduced price compared to its actual value, leveraging the bank’s position of power in the ongoing legal proceedings.
Commenting on Jayawardena’s acquisition strategy, business sources highlight the substantial assets held by Nawaloka Hospital, estimated to be worth billions. The hospital’s financial woes escalated during the Covid-19 pandemic, leading to the default on a construction loan of nearly 35 crore rupees, which subsequently ballooned to 64 crores.
Harry Jayawardena, who boasts experience in private hospital management and currently owns Ragama Melsta Hospital, has previously held ownership of Ceylon Hospitals.
Meanwhile, Subhashkaran Aliraja has entered the fray in bidding for Lanka Hospitals, which has been put up for sale by the government. However, Aliraja has encountered legal hurdles following the rejection by the cabinet sub-committee overseeing the restructuring of government properties during the initial round of bidder selection. Additionally, he has submitted a bid for the purchase of Sri Lanka Telecom, indicating his interest in expanding his business portfolio.
