The Cabinet of Ministers has approved a joint management framework for the administration and operation of Dr. Nevil Fernando Hospital, with the Sri Lanka Air Force set to oversee the hospital’s management under a proposed new public enterprise.

The decision follows a Cabinet resolution made on June 27, 2017, under which the administrative activities of Dr. Nevil Fernando Hospital were transferred to the Ministry of Health, effective August 1, 2017.

At a subsequent Cabinet meeting held on February 9, 2026, approval was granted for the hospital’s management activities to be carried out under the Sri Lanka Air Force in accordance with the proposed hybrid management model, through a public enterprise established under the Companies Act.

Following the decision, the Ministry of Finance, Planning and Economic Development, the Ministry of Defence, the Ministry of Health and Mass Media, and the Sri Lanka Air Force jointly proposed a management and control framework for the hospital.

Under the proposed framework, Dr. Nevil Fernando Hospital will continue to provide both inpatient and outpatient medical services, with services offered on both free-of-charge and fee-paying bases.

The Cabinet approved the joint proposal submitted by the President in his capacity as Minister of Defence and Minister of Health and Mass Media. The key provisions of the approved framework are as follows:

• Ownership of the hospital and its assets will be transferred to a company in which 100% of the shares will be held by the Treasury. The Sri Lanka Air Force will be responsible for managing the hospital.
• The Secretary to the Treasury will appoint 11 members to the Board of Directors of the proposed company, based on recommendations made by the Secretary to the Ministry of Defence.
• The General Treasury will provide the necessary funds to cover the salaries and operational expenses of the proposed company during the 2026–2028 period. Thereafter, the hospital is expected to operate as a self-financing institution.
• Medicines, medical supplies and other consumable items required by the hospital will be provided annually at an estimated cost of Rs. 125 million. These supplies will be funded through allocations made to the Ministry of Health and Mass Media for the provision of free healthcare services to the public through the hospital.

The approved framework is intended to establish a new administrative and financial structure for Dr. Nevil Fernando Hospital while ensuring the continued provision of both free and fee-based healthcare services.