Govt. repaying Rs.2.5 bn loan for Neville Fernando Hospital

The government has not legally acquired the Dr. Neville Fernando Hospital, and the land it stood on belonged to the Urban Development Authority, Health Ministry Secretary Wasantha Perera informed the Presidential Commission of Inquiry (PCOI) investigating corruption in the current administration, on Friday.

However, Ms. Perera informed the PCOI that though the government acquisition of the hospital had not transpired in a legal manner, the government was continuing to settle bank loans obtained by the hospital owner.

She added that the government was repaying a Rs.2.5 billion loan which the Neville Fernando Hospital had obtained as a private entity from the Bank of Ceylon.

Earlier the PCOI was notified that three Cabinet Papers were submitted regarding the government acquisition of the hospital, but the hospital owner had taken measures to sell it to another private entity.