Nawaloka Hospitals settles with HNB

• Eyes tech-driven expansion

Nawaloka Hospitals PLC has concluded a crucial debt settlement with Hatton National Bank PLC (HNB), resolving the outstanding loan facilities and positioning the healthcare giant for a new phase of growth driven by technological innovation and service expansion, according to the company’s latest annual report.

The company fully settled all loans and dues to HNB, amounting to Rs.3.35 billion, on May 23, 2025, by securing new borrowing facilities from Bank of Ceylon.

Nawaloka Hospitals Chairman Dr. Jayantha Dharmadasa told the shareholders that the settlement has fortified the entity’s financial foundation, strengthened its financial stewardship and enhanced its ability to channel resources into future growth.

The settlement addresses legal actions initiated by HNB in April 2023 for debt recovery, including a parate execution for loans owed by its subsidiary New Nawaloka Medical Centre (Pvt.) Ltd. Nawaloka had obtained an interim injunction to halt the execution while negotiations were underway.

As of March 31, 2025, Nawaloka Hospitals Group’s total borrowings stood at Rs.6.68 billion. The group’s total liabilities were recorded at Rs.15.11 billion against total assets of Rs.20.02 billion.

Despite a net current liability position, the hospital reported a profitable year, with a net profit of Rs.56.38 million, a significant recovery from the Rs.304.75 million loss in the previous year. The management attributed this turnaround to increased patient volumes and operational efficiencies. With a more stable financial footing, Nawaloka is aggressively pursuing a future-focused strategy centred on advanced medical technology (medtech) and expanded patient services. The hospital has presented a roadmap for the coming years, with key plans focused on several areas. A top priority is the integration of robotic surgical tools and deeper investments in artificial intelligence (AI)-powered clinical systems to enhance precision and patient outcomes, building on the recent launch of South Asia’s first AI-powered Radiology Centre, which has already improved diagnostic speed and accuracy.

The company also plans a nationwide rollout of mini-medical centres and diagnostic labs, aiming to decentralise excellence and make healthcare more accessible across Sri Lanka. Finally, Nawaloka is strengthening its position as a regional medical tourism hub by targeting international patients with specialised treatment packages and leveraging telemedicine for pre and post-treatment consultations.

These strategic initiatives are backed by a capital expenditure plan, which is expected to peak at Rs.1.88 billion in 2027, fuelling infrastructure modernisation and ensuring the hospital remains at the forefront of medical innovation. (NF)