Cabinet approves new management framework for Nevil Fernando Hospital

The Cabinet of Ministers has approved a new management framework for the Dr. Nevil Fernando Hospital, transferring its operations to the Sri Lanka Air Force under a hybrid mission model and a public enterprise established through the Companies Act.

The decision follows earlier Cabinet approval in 2017 to place the hospital under the Ministry of Health. 

At the meeting held on 09 February 2026, ministers endorsed a joint proposal by the Ministry of Finance, the Ministry of Defence, the Ministry of Health, and the Sri Lanka Air Force to establish a shared management and control structure.

Under the framework:

• Ownership and assets of the hospital will be transferred to a company with 100% Treasury shares, while management will be conducted by the Sri Lanka Air Force.
• The Secretary to the Treasury will appoint an 11‑member Board of Directors based on recommendations from the Ministry of Defense.
• The General Treasury will provide funding for staff salaries and operations from 2026 to 2028, after which the hospital will operate as a self‑financing institution.
• Medicines, medical supplies, and consumables worth Rs. 125 million annually will be supplied through allocations to the Ministry of Health and Mass Media for services provided free of charge to the public.

The government states the hospital will continue to provide both in‑house and outpatient treatments, free of charge and on a fee‑charging basis. (Newswire)

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