BIZ
HNB depositors at risk as Nawaloka defaults while spending Rs.1.3 bn. on equipment
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
Visit of CII CEOs delegation to Colombo (Pics)
A CEOs delegation of the Confederation of Indian Industry (CII), led by Mr. Sanjiv Puri, Immediate Past President, CII and Chairman & Managing Director of ITC Limited, visited Colombo from 29 June to 02 July 2025.
The visit followed an invitation extended by the President of Sri Lanka during his State Visit to India in December 2024. The delegation comprised over 15 prominent Indian business leaders representing diverse sectors including hospitality, manufacturing, energy, healthcare, textiles, and tourism, among others.
During the visit, the CII delegation also called on the President and the Prime Minister of Sri Lanka. The leadership briefed the Indian business representatives on the constructive measures undertaken by the government to foster a supportive economic climate, promote investment, and ensure fair and transparent business practices.
In addition, the delegation held wide-ranging discussions with several senior Ministers and officials of the Government of Sri Lanka, including the Minister of Energy; Minister of Industry and Entrepreneurship Development; Minister of Labour and Deputy Minister of Economic Development; Minister of Trade, Commerce, Food Security and Cooperative Development; and the Chairman of the Board of Investment of Sri Lanka. These discussions explored avenues for investment-led collaboration and sector-specific partnerships.
A key highlight of the visit was a CEOs’ Roundtable organised by the High Commission of India on 30 June at ITC Ratnadipa, in collaboration with the Ceylon Chamber of Commerce (CCC). The CCC delegation was led by Mr. Krishan Balendra, Chairman and CEO of John Keells Group. The Roundtable witnessed in-depth deliberations on strengthening bilateral economic cooperation and identifying new opportunities for collaboration. High Commissioner of India to Sri Lanka – Mr. Santosh Jha also participated in the interaction.
To mark the occasion, the High Commissioner hosted a networking reception that brought together prominent business leaders, senior ministers, and political leaders. The event also witnessed the participation of leading trade and industry chambers from across Sri Lanka.
The visit of the CII CEOs delegation successfully identified various areas of mutual interest for forging further economic linkages and trade connections. It also highlighted the commitment of apex Indian chambers of commerce, such as CII, to deepening existing economic ties, promoting investment-led partnerships, and exploring new avenues for collaboration between India and Sri Lanka.
The delegation included :
- Dr Nandini Rangaswamy – Chairperson, GRG Educational Institutions & Managing Director, Chandra Group of Companies
- Dr S Chandrakumar – Founder & Executive Chairman Kauvery Group of Hospitals
- Mr CK Ranganathan – Chairman & Managing Director CavinKare Pvt Ltd
- Mr G R Anantapadmanaban – Managing Director GRT Group
- Mr VKC Razak – Chairman, CII Kerala State Council & Managing Director of VKC Footgear Pvt. Ltd.
- Mr Dipak Das – Managing Director Lanka IOC PLC
- Mr Christo George – Convenor CII Kerala Manufacturing MSME & Export Panel, Chairman and Managing Director of Hykon India Limited
- Mr Sohel Firoz Kazani – Founder and Managing Partner of Interport Impex Private Limited (Bharat Freight Group)
- Mr Sunin Sunny – CEO of Ecospice Ingredients Pvt Ltd.
- Mr Ravi Dolli – Member, CII Maharashtra Manufacturing Panel & CEO of Alloy Steels
- Mr Rahul Nayak – Head of International Business TVS Motor Company
- Ms Neerja Bhatia – Deputy Director General Confederation of Indian Industry
- Mr Saikat Roy Chowdhury – Executive Director of International Confederation of Indian Industry
- Mr Manish Mohan – Senior Director of International Confederation of Indian Industry
BIZ
Lanka IOC donates Rs. 100 mn. to the President’s Fund
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