Apollo Hospital group in India which founded the Lanka Hospital expresses their interest to regain the controlling ownership of the hospital under the ongoing government’s divestiture plans, sources said to Lankasara.
The multinational healthcare group based in the southern Indian city of Chennai started its Sri Lanka operation by opening its first Appollo hospital in Colombo in 2002. However, the company exited from the business following share transfers in the Colombo Stocks Exchange. Finally, the hospital fell into the government’s hands through share ownership by government-owned companies and rebranded as Lanka Hospital.
Sources further said that the Apollo company has looking at the possibilities of gaining a controlling share through the government’s divestiture plans,
The Sri Lankan government has set up a separate unit SOE Restructuring Unit (SRU), to restructure state-owned enterprises and it recently sought a Request for Qualification (RFQ) for those who are interested in Lanka Hospital. Accordingly,
eight parties have expressed their interest in acquiring 51.% of the stake, which is currently held by the government.
Among them Apollo group of India and several Sri Lankan parties sources further said.
Healthcare industry leader Asiri Group, Hemas, and Sunshine Holdings are among them. In addition, two other foreign parties also have expressed their keenness on Lanka Hospital sources further said.
The Sri Lankan government is in the process of restructuring state-owned enterprises according to the agreement with the International Monetary Fund to facilitate 2.9 Bn USD Extended Financial Assistance. In July 2023, The Cabinet of Ministers approved special guidelines on divestiture of State-Owned Enterprises.
The Requests for Qualification (RFQ) received will be considered by the Special Cabinet Appointed Negotiating Committee sources further said.