It was signed during a ceremony held at the hospital under the patronage of President Maithripala Sirisen.
The Chairman of the Private Medical College in Malabe, Dr. Neville Fernando and the General Manager of the Bank of Ceylon, D.M. Gunasekara signed the agreement.
According to Health Minister Rajitha Senaratne, the hospital will serve as a teaching hospital upon being taken over by the government.
Health services at the hospital will commence under the government from August 1.