The Board of Investments approved 3.5 billion rupee new hospital will be a fully owned subsidiary of Asha Central Hospital, he said.
"We are hoping to start building towards the end of this year. Plans on how we hope to raise the money for it will be disclosed once they are finalised," Fernando told LBO.
Market analysts say the hospital could raise cash by rights issue, bank borrowings, or a combination of all three. The management may also eventually look at the option of selling its existing property to pay off the debt at a later stage.
Asha, currently has a 112-bed hospital in Cinnamon Gardens Colombo 07, which has an occupancy of around 90 percent. About 100 specialists also use the hospital to offer channeling services to out patients.
Private sector hospitals operating in Sri Lanka mainly cater to the middle and upper-middle class market and accounted for around 50 percent of all curative treatment needs last year.The attractive fiscal incentives offered by the government to attract foreign and local investment to the health care industry have also helped spur growth.