Asiri Hospital drives Southern expansion while clearing balance sheet legacy

By Nishel Fernando
Asiri Health is aggressively pursuing a dual strategy of regional expansion and rigorous financial restructuring, aiming to decentralise tertiary care while simultaneously cleaning up the legacy financial exposures. 
The healthcare group is significantly strengthening its clinical capabilities in the Southern province through infrastructure developments at its hospitals in Matara and Galle, a move designed to reduce the region’s reliance on Colombo for advanced treatment.
A cornerstone of this regional strategy is the planned commissioning of the first-ever Cardiac Catheterisation Laboratory in the Matara district at Asiri Hospital Matara. Scheduled for completion in 2025, this facility will be supported by a fully operational Coronary Care Unit, enabling the hospital to deliver comprehensive cardiac care, including emergency interventions. 
Simultaneously, Asiri Hospital Galle is progressing with plans to establish a Kidney Transplant Programme, building on the continued success of its existing Dialysis Unit to position the hospital as a fully-fledged tertiary renal care centre for the region.
Parallel to its clinical growth, the group has executed significant financial housekeeping regarding its exposure to its parent entity, the Softlogic group. Having addressed external auditor concerns over the recoverability of the related party dues through substantial impairment provisions in the previous financial year, the group’s balance sheet appears to have stabilised. As of September 30, 2025, the loans granted to the related parties by the Asiri Hospital Holdings group stood at approximately Rs.8.46 billion, reflecting a more consolidated financial position, following the resolution of prior audit qualifications.
The group continues to navigate notable legal and regulatory challenges alongside these developments. A significant dispute with the Inland Revenue Department regarding the income tax exemptions for the years 2005 to 2015 remains ongoing, with a potential liability estimated at Rs.640 million, inclusive of the penalties. The company has assessed the provisioning requirements based on the applicable tax laws and a Court of Appeal case preventing the recoverability of this tax is scheduled for argument in January 2026.
These strategic initiatives and restructuring efforts are already yielding tangible financial results. According to the latest interim financial statements for the six months ended September 30, 2025, Asiri Hospital Holdings PLC reported a group revenue of Rs.17.2 billion, an increase from Rs.15.0 billion in the same period last year. Notably, the group’s profit after tax for the first half nearly doubled, reaching Rs.2.33 billion, compared to Rs.1.20 billion in the previous year. Asiri Surgical Hospital PLC, a key subsidiary, also maintained its growth trajectory, recording a revenue of Rs.3.89 billion and a net profit of Rs.442 million for the six-month period.