Cabinet clears resumption of eight stalled hospital projects at revised cost of Rs. 16.2 b

Wednesday, 24 December 2025 03:31 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Health Minister Dr. Nalinda Jayatissa

The Cabinet of Ministers on Monday approved the resumption of eight major health infrastructure projects that were previously suspended due to the COVID-19 pandemic and the subsequent economic crisis, accepting revised cost estimates and extended completion timelines that will raise the total State expenditure to Rs. 16.2 billion.

The projects were halted following recommendations by the Re-strategising and Acceleration of Mega Projects Committee (RAMP), as fiscal pressures and funding constraints forced the Government to slow or suspend large-scale capital works.

However, in light of mounting pressure on the public healthcare system and rising demand for services, the Government has now determined that completing these partially built facilities is essential to strengthen hospital capacity and service delivery.

The Cabinet approved the proposal presented by Health Minister Dr. Nalinda Jayatissa to revise the costs and timelines of the eight projects and to recommence construction.

Among the projects to be resumed is the Accident and Emergency Treatment Unit at the Base Hospital Kegalle, with a revised cost of Rs. 2,095.58 million and a completion target of 31 December 2029. The construction of a medical ward complex at the Chilaw District General Hospital has been re-estimated at Rs. 1,266.38 million, with completion expected by the end of 2028, while a separate Accident and Emergency Treatment Unit at the same hospital is now projected to cost Rs. 4,057.96 million and be completed by 31 December 2030.

Other projects approved for resumption include the Cardiology Treatment Building at the Ratnapura Teaching Hospital at a revised cost of Rs. 3,543.77 million, the new clinic building at the Ragama Rehabilitation Hospital costing Rs. 678.83 million, and the Primary Care Unit and Paramedical Services Building at the Millennium Ward of the Colombo South Teaching Hospital, Kalubowila, with an allocation of Rs. 1,245.50 million. The Cabinet also cleared the continuation of the 10-storey surgical ward complex at the Karapitiya Teaching Hospital, now estimated at Rs. 2,070.12 million, and the building complex for the Stroke Treatment Unit at the Polonnaruwa District General Hospital at a revised cost of Rs. 1,265.30 million. Most of these projects are expected to be completed by the end of 2028.

Addressing the financial implications, the Cabinet Slokesman and Minister during the post-Cabinet meeting media briefing noted that had successive Governments completed the eight projects within their original timelines, the total cost to the State would have been about Rs. 6,717 million.

“However, due to prolonged delays, inflation and revisions to scope and specifications, the revised estimates now place the total cost at Rs. 16,223 million, resulting in an additional burden of Rs. 9,508 million on public finances,” he added.