Govt. earmarks over Rs. 21 b for nine new health projects as part of 2026 public investment push

Cabinet Spokesman and Health Minister Dr. Nalinda Jayatissa

• Cabinet green lights move following approval by Public Investment Committee
• Health Minister Dr. Nalinda Jayatissa says move aims to address gaps left during crisis period

The Government will channel over Rs. 21.64 billion into nine major health sector projects next year, Cabinet Spokesman and Health Minister Dr. Nalinda Jayatissa announced yesterday, as it moved to restart stalled developments and address critical gaps left by the economic crisis of 2021–2024.

He noted that the Public Investment Committee has identified a series of projects vital for improving national health outcomes, all of which have now been approved by the Cabinet of Ministers at their meeting on Monday for immediate implementation.

Speaking at the weekly post-Cabinet meeting media briefing yesterday, Dr. Jayatissa said the downturn triggered by COVID-19 forced the suspension of many essential health investments, but with the economy stabilising, the Government is prioritising both the recommencement of abandoned projects and the launch of new initiatives under the 2026 Budget. 

The nine projects include; 1) the National Oral Health Census for 2025/2026, which has been allocated Rs. 33.6 million, 2) expansion of the existing four-storey building at the Kurunegala Teaching Hospital for the establishment of proposed operating theatre, endoscopy unit and cardiothoracic pre-operative ward with Rs. 1,892 million, 3) construction of a five-storey building with outpatient department and specialised units for the Maharagama Oral Health Services Institute with Rs. 2,240 million, 4) construction of a five-storey building for the Institute of Forensic Medicine and Toxicology (for the Colombo Forensic Medicine Unit) with Rs. 1,591 million, 5) Construction of Phase-I and Phase-II of the building complex for Accident and Emergency Treatment and related services at the Anuradhapura Teaching Hospital with Rs. 6,518 million, 7) construction of official residences for specialist doctors and medical officers at the Anuradhapura Teaching Hospital with Rs. 6,518 million, 8) expansion of Radiology Unit at the Batticaloa Teaching Hospital to house the new MRI scanner with Rs. 250 million and 9) construction of the National Heart Centre at the National Hospital of Sri Lanka with Rs. 200 million.

“The 2026 Budget has allocated Rs. 31 billion for the development of Base Hospitals, including infrastructure upgrades and improvements in Human Resources,” Dr. Jayatissa added.

When asked if the Government intends to upgrade some of these identified Base Hospitals into District Hospitals, he stressed that the Government’s intention is not merely to rebrand Base Hospitals as District Hospitals, but to ensure these facilities genuinely meet the standards required for such elevation.

The Minister also noted that 17 health projects abandoned by previous administrations are now being revived under a three-year program running from 2026 to December 2028, with a total investment of Rs. 45 billion and of this, Rs. 22 billion has been earmarked specifically for 2026.

“The investments mark a renewed commitment to strengthening the country’s healthcare system, ensuring equitable access and rebuilding capacity after years of crisis-driven disruption,” Dr. Jayatissa explained.

The proposal to this effect was submitted by Health Minister Dr. Jayatissa.