The German-Sri Lanka Friendship New Women’s Hospital in Karapitiya, Galle, hailed as the largest maternity hospital in South Asia, was inaugurated by President Ranil Wickremesinghe on Wednesday (27).
The six storey Hospital claims 640 beds, six operating theatres, emergency treatment units, intensive care units (ICUs), laboratories, infant ICUs, special paediatric units, state of the art medical facilities, and a water purification and recycling unit. The total land area of the Hospital is nearly 1,000 perches.
The German Government has contributed Euros 25 million (Rs. 3570 million) to this project, in addition to providing medical equipment. The former German Chancellor, Helmut Kohl, made this donation towards the construction of a new maternity hospital in Sri Lanka.
Following the inauguration of the new Hospital, plans are underway to relocate the Mahamodara Maternity Teaching Hospital from its current location.
During the inauguration, President Wickremesinghe commented: “Due to extensive borrowing last season, a staggering 50% of our income is now allocated towards debt and interest payments. Although over Rs. 7 trillion was earmarked for this year’s (2024) Budget, a significant portion, totalling Rs. 3.9 trillion, must be directed towards debt repayment. Of this amount, one third is dedicated to loan settlement, while the remaining two thirds are allocated for interest payments. Additionally, approximately Rs. 1.2 trillion is allocated for salaries. After accounting for recurring expenses, there is very little remaining for essential activities such as irrigation. As a nation, we cannot sustain this current situation. Recognising this urgency, the International Monetary Fund, the World Bank and the Asian Development Bank have advised us to initiate immediate restructuring measures. Our first step towards achieving economic stability involves generating the necessary funds for this year’s expenditure domestically. Printing money or seeking funds from State banks are not viable options at this time.
“Therefore, we must focus on earning the required income internally. Implementing tax hikes was the sole viable option, despite facing widespread criticism. However, this measure eliminated the need to print money for the budget for the first time. We acknowledge the hardships endured by all, yet, the tax increase spared us from budgetary loans. The Rupee, once valued at Rs. 370 against the United States Dollar, has now strengthened to Rs. 300. This trend is anticipated to continue, further bolstering the Rupee’s value in the future. The decrease in inflation has facilitated a reduction in interest rates, which in turn is expected to stimulate business growth. Additionally, efforts were made to augment salaries in the public sector and furthermore, we endeavoured to triple the number of ‘Aswesuma’ beneficiaries and expand the scope of coverage. Corresponding initiatives were also undertaken to boost salaries in the private sector. By adhering to this programme, the loan repayment burden is anticipated to diminish gradually over the next two years, freeing up resources for national development endeavours,” he said.