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 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.
