Nawaloka Medical Center (Pvt) Ltd is under scrutiny after they recently announced the purchase of an AI-powered MRI machine worth USD 1.3 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 Cabinet of Ministers led by 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.

The National Salt Limited has announced plans to release a new brand of table salt under the government label, named “Raja Lunu,” to the local market in the near future.

This launch coincides with the formal transfer of the Alimankada Salt Factory to public ownership on the 29th of this month.

Chairman of National Salt Limited, Mr. Gayan Wellala, stated that the factory will produce and distribute “Raja Lunu” salt at an affordable price, aiming to offer a quality product at a concessionary rate.

The Consumer Affairs Authority (CAA) has confiscated a stock of Keeri Samba rice worth over Rs. 3.8 million.

 The stocks were officially seized today (March 18) following a legal case against two shop officials in Colombo 12.

On February 11, the Colombo Chief Magistrate’s Court (No. 5) fined shop owner Abdul Jabbar Mohamed Siyas and manager Kuruppan Murugayya Rs. 10,000 and Rs. 20,000, respectively, after they pleaded guilty to hoarding rice. 

The case was filed after a raid conducted by the CAA revealed that the shop falsely claimed to be out of Kiri Samba rice, despite hiding 3,000 five-kilogram packs on the premises.

Under the Consumer Affairs Authority Act, when a retailer is found guilty of falsely declaring goods unavailable, the court has the authority to confiscate the stock.