• Authorities to make decision pre-2026 Budget 

The Government is expected to make a decision on the future of the Dr. Neville Fernando Teaching Hospital (NFTH) in Malabe soon, with special attention being given to the possibility of using it for health tourism under a public-private partnership (PPP).

Established in 2013 as the Teaching Hospital to the South Asian Institute of Technology and Medicine (SAITM), the NFTH faced controversy and public debate over its ownership and management, eventually leading to a partial government takeover in 2017. 

Speaking to The Daily Morning, the Deputy Minister of Health, Dr. Hansaka Wijemuni said that several options are being explored, including converting the hospital into a government hospital, leasing it to the private sector, selling it outright, or managing it through a PPP. "Several options are being considered. However, we are considering using this for health tourism as a more viable option. A final decision will be made soon, likely before the next Budget (2026) is presented,” the deputy minister added.

He said that there are a few hospitals that are currently a burden for the Government, and that the NFTH was one of them. He pointed out: "This was taken over (partially) by the government without any proper evaluation, and it has become a huge burden now. The Ministry of Health is paying the salaries of its staff. Taking over failed or non-functioning projects under the ministry puts a strain on the money allocated for public healthcare."

Speaking further, he said that converting the Hospital into a fully government-run facility is unlikely due to the extensive costs involved in renovating the buildings and the fact that its current structure does not suit a Government Hospital setup. "A special committee is appointed to look into the matter, and we expect proposals from them soon. In the process of making a final decision, we will also take into account the views of the relevant stakeholders including its staff," Wijemuni noted.

Originally established to provide clinical training to SAITM medical students, the NFTH is equipped with over 1,000 beds and a range of medical facilities, including surgical units, intensive care, diagnostics, and outpatient services. It initially operated as a private entity, and was partially taken over by the Government in 2017. Since then, it has continued to operate, but questions remain about its long-term structure, funding, and the role within the national healthcare system.