BIZ

HNB depositors at risk as Nawaloka defaults while spending Rs.1.3 bn. on equipment

Published

3 months ago

March 20, 2025

editor

Nawaloka Medical Center (Pvt) Ltd is under scrutiny after they recently announced the purchase of an AI-powered MRI machine worth USD 4.5 million (nearly Rs.1.33 billion) while still owing a huge debt to pay off Rs.0.63 billion to Hatton National Bank (HNB).

The move has raised serious concerns, especially among HNB depositors.

The machine has been purchased in a backdrop where the Nawaloka group is paying over Rs. 335 million as monthly loan repayments to pay off bank loans amounting to nearly Rs. 2.3 billion to several banks including the HNB, People’s Bank, Bank of Ceylon, DFCC and Commercial Bank.

Last year, the HNB had even obtained a court order to auction off Nawaloka hospital premises in Colombo 02 due to non-payment. However, Nawaloka had secured a temporary stay order from the Court of Appeal, halting the process.

However, the case is currently under legal examination.

The Nawaloka Hospital has a 800-bed capacity, in comparison to around 650-bed capacity of the entire Asiri Hospital chain.

Majority shares of the Nawaloka Hospital is owned by the Dharmadasa family headed by Jayantha Dharmadasa.

Further controversy surrounds HNB’s financial exposure, as it has also issued large loans to Softlogic PLC, which is said to be facing financial difficulties due to foreign borrowings – increasing concerns about potential instability in the banking sector.

Economic experts also point out that if the loans related to HNB are written off as bad debts due to this situation, it will be difficult to repay the money of deposit holders, facing a risk of the bank collapsing altogether.

Non-payment by such large corporations could lead to rising loan interest rates, tightened credit access for SMEs and limiting laws such as the parate execution law, they point out.

However, the former president Ranil Wickremesinghe had decided to suspend ‘Parate executions’ leading to the Court of Appeal issuing an interim order just two days afterwards, preventing HNB Plc from taking parate action against its subsidiary, Nawaloka Hospitals PLC.

BIZ

Starlink now available in Sri Lanka – Elon Musk

Published

39 minutes ago

July 2, 2025

editor

Billionaire businessman Elon Musk has announced that the Starlinksatellite internet service is now available in Sri Lanka.

“Starlink now available in Sri Lanka!” Elon Musk said in a post on ‘X’.

Starlink now available in Sri Lanka! 🇱🇰 https://t.co/37X5hNOEfL
— Elon Musk (@elonmusk) July 2, 2025

BIZ

End of parate relief for large SMEs

Published

1 day ago

July 1, 2025

editor

The grace period granted to small and medium-sized enterprises (SMEs) under Sri Lanka’s Parate Execution Law officially ended midnight yesterday (June 30) for businesses with loans exceeding Rs. 50 million.

The Parate Law grants banks the authority to seize properties pledged as collateral without court proceedings. Although its implementation had been suspended for three months by the current administration—and for six months earlier under former President Ranil Wickremesinghe—it has now been reinstated, triggering serious concern among entrepreneurs.

Deputy Minister of Economic Development – Dr. Anil Jayantha Fernando has stated that the government intends to hold discussions with all relevant parties in the coming days to address the issues linked to the law’s reimplementation.

Meanwhile, Opposition Leader – Sajith Premadasa has warned that the re-implementation of the Parate Execution Law could lead to the rapid auctioning of assets from small, medium, and micro businesses, putting them at risk.

In a statement yesterday (June 30), he emphasized that these businesses contribute over 50% to Sri Lanka’s Gross Domestic Production (GDP) and employ over 04 million people.

BIZ

Special FD scheme for senior citizens introduced

Published

1 day ago

July 1, 2025

editor

The Ministry of Finance has officially launched the special fixed deposit scheme for senior citizens.

Proposed in the Budget 2025, the scheme which is open to resident Sri Lankan citizens aged 60 years and above, comes into effect from today (July 01).

Eligible fixed deposits can be opened between July 01, 2025, and December 31, 2025, and must have a 12-month tenure.

The scheme will be implemented through the 17 licensed commercial banks; five (05) government banks and twelve (12) private banks that have confirmed participation. As part of the process, customers are required to provide a declaration confirming that the funds deposited are their own, their monthly income is less than Rs. 150,000, consenting to the sharing of relevant information with the Ministry of Finance, Planning and Economic Development for verification purposes, agreeing that any false information provided will result in disqualification from receiving the interest subsidy.

The government has allocated Rs. 30 billion to cover interest subsidies under this initiative.

Key features of the scheme:
– Deposit Period: 12 months (1 year)

– Deposit Limit: Maximum of Rs. 1 million

– Interest Benefit: Depositors will receive either

An additional 3% over the Average Weighted Fixed Deposit Rate (AWFDR), or
An additional 3% over the declared fixed deposit rate—whichever yields a higher return.

Senior citizens interested in availing themselves of the benefits are encouraged to visit the nearest bank branch starting today. Applicants must provide valid documentation, including their National Identity Card (NIC) and Taxpayer Identification Number (TIN) issued by the Inland Revenue Department (IRD).

This scheme aims to support the financial security of senior citizens by offering them a safer and higher-yielding savings option.