Retail Diagnostics

May 17, 2012 (LBO) – Sri Lanka’s Lanka Hospital Corporation said it will set up a diagnostic laboratory network with India’s Fortis Healthcare in which it will invest 831 million rupees over the next two years. Lanka Hospitals, a unit of state-run Sri Lanka Insurance, will float a fully owned unit to operate the labs.

India’s Fortis Healthcare is the second largest shareholder of Lanka Hospitals Corporation.

Last March, Fortis bought a 28.6 percent slice of Lanka Hospitals for 3.98 billion rupees. Lanka Hospitals was earlier managed by India™s Apollo Hospitals group.

Super Religare Laboratories, a unit of Fortis Healthcare will partner with Lanka Hospitals.

“It is expected that the company will invest a sum of 831 million rupees over the two-years in the new company, Lanka Hospitals said in a regulatory filing Thursday.

Lanka Hospital™s shares closed up 30-cents to 29.20 rupees on Thursday.

Since April last year, Fortis also manages the cardiac centre of the Colombo-based Oasis Hospital.

One of India™s largest hospital chains with 55 hospitals, Fortis also runs healthcare units in Australia, Canada, Dubai, Hong Kong, Mauritius, New Zealand, Singapore and Vietnam.