Nawaloka Hospitals suffers revenue drop
By Uwin Lugoda
Nawaloka Hospitals PLC has experienced low revenue due to a reduction in their customer count, according to Deputy Chairman Harshith Dharmadasa.
In a disclosure to the Colombo Stock Exchange (CSE) on the impact of Covid-19, Dharmadasa explained that the company is currently experiencing low revenue due to the lack of public transport for customers, preventing them from reaching out for hospital services. He went on to state that the international travel restrictions have also prevented any foreign patients from coming to the hospital for treatment.
Despite this however, he stated that the company has predicted that this drop in revenue is a short-term trend as healthcare is an essential requirement for the country.
“We predict a change in the current trend once the curfew situation is over and public movement improves. Therefore, we see this issue as a short-term challenge to the hospital as healthcare is an essential need for the public.”
Due to this, the company has restricted capital expenditure and implemented several cost-reduction measures, in order to manage their liquidity position. Furthermore, he stated that the company is currently maintaining cash reserves which can be used whenever needed, and therefore does not predict an inability to meet their financial obligations.
Due to healthcare being an essential requirement for the country, the company has had no requirement to create any provisions for their assets and has also faced no issues in supply chain management. Dharmadasa went on to state that the company is also not impacted by the travel restrictions imposed by the Government, as their staff has been able to reach the hospital without any restrictions.
Established in 1985, Nawaloka Hospitals PLC has under its wing one of Sri Lanka’s largest private hospitals in its portfolio of two, one located in Colombo and the other in Negombo.