Full ownership of Neville Fernando Teaching Hospital to the government - administrative and operational activities to the Air Force

Steps have been taken to acquire full ownership of Dr. Neville Fernando Teaching Hospital by the government under a new operational framework approved by the Cabinet, and to entrust its daily administrative and operational activities to the Sri Lanka Air Force. Cabinet approval for this new mechanism has been granted based on a joint proposal submitted by His Excellency President Anura Kumara Dissanayake as the Minister of Defence and the Minister of Health and Mass Media.

Under this new program, the hospital and all its assets will be transferred to a company with full ownership by the General Treasury, and the responsibility for the hospital's administrative as well as day-to-day operational activities will be entrusted to the Air Force. The entire share ownership of this company, established as a state enterprise under the Companies Act, will remain with the General Treasury, and it will be governed by an 11-member Board of Directors appointed by the Secretary to the Treasury based on the recommendations of the Secretary to the Ministry of Defence.

Regarding financial provisions, the General Treasury is expected to provide funds for the salaries and operational expenses of the hospital staff during the period from 2026 to 2028. After this period, the hospital is planned to be maintained as a self-financing institution that generates its own required funds.

In addition to the free medical services provided to the public, this hospital also offers inpatient and outpatient medical services on a payment basis. To support the provision of free healthcare services, approximately 125 million rupees worth of medicines, medical supplies, and other essential items are expected to be provided annually through budget allocations from the Ministry of Health and Mass Media.

In accordance with a Cabinet decision taken on June 27, 2017, the administrative functions of this hospital were transferred to the Ministry of Health, effective from August 01, 2017.