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

SriLankan sends special relief flight to Sumatra

Published

2 days ago

June 6, 2025

editor

SriLankan Airlines has dispatched a special relief flight – UL 302 from Bandaranaike International Airport (BIA) to Medan International Airport on the Indonesian island of Sumatra to transport 101 passengers and crew members of SriLankan Airlines flight UL 306, which was grounded due to a technical fault.Singapore-bound SriLankan Airlines flight UL 306, which departed from BIA in Katunayake for Singapore last evening (June 05), had made an emergency landing at Medan Kuala Namu International Airport due to a technical issue.

Following an inspection by an Indonesian technical team, it was determined that the necessary repairs would require additional time. Therefore, SriLankan Airlines decided to accommodate the passengers in hotels.

Although a complication had initially arisen when Indonesian authorities initially declined to grant permission for hotel transfers, it was later resolved through the intervention of the Sri Lankan Ambassador to Indonesia.

Meanwhile, a technical team from Sri Lanka had departed for Indonesia on a flight bound for Jakarta this morning (June 06) to further inspect the grounded aircraft.

BIZ

Minister warns to impose MRP on salt

Published

3 days ago

June 5, 2025

editor

Minister of Trade – Wasantha Samarasinghe has warned that the government will be forced to introduce a Maximum Retail Price (MRP) for salt by this week, if importers attempt to sell imported salt at higher prices.

Speaking at a media briefing, he said that a kilo of imported salt will cost Rs. 77, along with the 40% tax imposed by the government.

“Let’s say it has been priced at Rs. 80 a kilo. Then, wholesale traders are allowed to keep a profit of Rs. 10, 20, or 30. But not beyond this margin. However, if importers are trying to use this shortage to create a racket, then I would like to warn them not to engage in such activities. We will be forced to impose a Maximum Retail Price if this continues,” he added.

BIZ

CEAT assures job security following Michelin Lanka acquisition

Published

5 days ago

June 3, 2025

editor

CEAT OHT Lanka (Pvt) Limited, a wholly owned subsidiary of CEAT Limited, India, has reassured employees that their jobs are secure following the acquisition of the CAMSO brand’s off-highway construction equipment bias tyre and tracks business from Michelin Lanka (Pvt) Ltd.

The holding company, CEAT Ltd. of Mumbai, India, announced in December 2024 that a definitive agreement had been signed for the acquisition. This includes the Midigama plant. the Casting Product Division in Kotugoda and some parts of other divisions providing central services.

To formalize the transition, a tripartite Memorandum of Understanding (MoU) was signed on May 22, 2025, between CEAT OHT Lanka, Michelin Lanka, and the Inter Company Employees Union.

The agreement guarantees 100% job security, preservation of past service, seniority, remuneration, and employee benefits.

However, employees of Michelin Lanka in Midigama, Matara, recently protested claiming that their jobs were at risk due to the sale.

CEAT, operating in over 120 countries, emphasized its commitment to employee welfare and workplace satisfaction, affirming it will honor all obligations under the agreement and actively invest in business growth.

CEAT, listed on the Mumbai Stock Exchange and part of the RPG Group, is a leading manufacturer of tyres for cars, buses, trucks, motorcycles, scooters, and off-highway vehicles.

CEAT had previously acquired Kelani Tyres, a fully state-owned enterprise in 1993, which was considered as a controversial deal facilitated by Ranil Wickremesinghe.

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