BIZ

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

Published

4 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

Govt to approve import of 300,000 MT of maize

Published

28 minutes ago

July 4, 2025

editor

Minister of Agriculture, Livestock, Land and Irrigation – K.D. Lal Kantha has announced that the government has decided to import 300,000 MT of maize.

Speaking to the media after attending a District Development Committee meeting at the Kandy District Secretariat yesterday (July 03), the Minister explained that this decision was taken to prevent traders from artificially inflating maize prices.

He stated that certain large and medium-scale businesses dealing with animal feed have been hoarding maize, buying it from farmers at fair prices and reselling it at much higher rates.

According to the Minister, these traders were trying to push maize prices up to Rs.190-200 per kilogram, which would have driven up the cost of eggs to Rs.200 each and increased meat prices significantly.

The Minister emphasized that while businesses are entitled to make a profit, the government will not allow unfair price manipulation. He also noted that, in the past, even ministers profited from animal products, but those days have ended and racketeers will not be allowed to control the market.

To prevent excessive price drops that could hurt farmers, the Food Security Committee has proposed imposing a tax on imported maize, he said.

Related News :

Sri Lanka likely to resume maize imports?

BIZ

No new tax on small parcel imports – Customs

Published

19 hours ago

July 3, 2025

editor

Sri Lanka Customs has refuted social media claims alleging the imposition of a new tax on small parcel imports.

Addressing the media, Customs Media Spokesman and Additional Director Seevali Arukgoda emphasized that no new taxes have been introduced, nor are there any disruptions to the clearance of imported goods.

“We are not increasing tax rates… we are simply ensuring duties are calculated correctly,” he said. “The previous system allowed for significant undervaluation and misuse. Now, we are enforcing the existing laws more transparently.”

He explained that duties are now calculated using the globally accepted Harmonized System (HS) Code, which categorizes goods by type and value, replacing the older method of relying on parcel weight or flat rates that were often exploited.

Arukgoda further assured that no parcels are being withheld and reiterated that rates remain consistent with those approved by Parliament. The changes, he said, were implemented after adequate notice was given to courier services and importers — including a 1.5-month notice period and a 2-week transition phase.

He also noted that there is no requirement for recipients of online orders to visit Customs in person. Courier companies continue to handle delivery and clearance, he added.