Healthcare Investment Opportunities in Sri Lanka
Sri Lanka’s health system is enriched by the coexistence of Allopathic, Ayurvedic, Unani, and various other medical systems. Allopathic medicine has emerged as the dominant system, serving the bulk of people’s health requirements. The Sri Lankan health system, like that of many other nations, comprises both the public and private sectors. The Health Ministry and the Provincial Health Services offer a comprehensive variety of preventative, curative, and rehabilitative health services. Sri Lanka has a vast network of health-care facilities. Government-established and managed hospitals provide healthcare free of cost, while privately established and managed hospitals provide healthcare on a fee levying basis.
However, in recent times, due to its ongoing crisis, Sri Lanka’s economy is in disarray. Despite sufficient warning and increasing demonstrations, the government waited too long before contacting the International Monetary Fund (IMF), and none of the structural and governance reforms necessary for an IMF programme to be successful are in place. Instead, the administration is still struggling under a caretaker regime with no clear public mandate. Add to that, the Sri Lankan currency has been declared the worst-performing currency in the world.
Economic and Financial Snapshot of Healthcare in Sri Lanka
Acute economic crisis is taking a heavy toll on Sri Lanka’s health care system. Having run out of funds to buy basic medicines, the nation now needs donations to resuscitate its healthcare system. Inflation rose to a record 33.8% year-on-year in April, 2022 compared to 21.5% in March 2022, according to government data released on 22nd May 2022.
To find money for supporting relief measures, the new Sri Lankan administration was undertaking a review of possible expenditure cuts across the country’s bloated government sector, but has said that health expenditure cannot be cut down.
Healthcare Investments and Donations in Sri Lanka
Sri Lanka Cricket (SLC) Donation of 2 Million US Dollars
In the midst of the island nation’s devastating economic crisis, Sri Lanka Cricket (SLC) will give $2 million US dollars to assist the country’s health sector in procuring necessary drugs. The money will be shared 50-50 between two hospitals, according to SLC.
A million dollars will be donated to the Lady Ridgeway Hospital for Children to purchase necessary drugs for paediatric treatment. In addition, the National Cancer Hospital will get US$ 1 million to acquire vital drugs for cancer patients’ treatment, according to a statement from the board. “Sri Lanka Cricket is extremely happy to make this donation at this moment of need for the country, and we will give our fullest support to our nation to overcome these challenging times,” Shammi Silva, the president of SLC, said. Meanwhile, many of Sri Lanka’s top cricketers are also understood to have made donations to the country’s health sector privately.
Investments in Health Insurance Sector
If not in other sectors, now is the ripe time to invest in Sri Lanka’s health insurance sector.
Private health insurance is on the rise as a result of growing dissatisfaction with public health insurance, globalisation, and increased knowledge of health-related concerns. It has created new opportunities for private enterprise. As demand increases, suppliers will be under pressure to improve quality and enhance innovation.
Allianz Sponsored Divithara Insurance
The world’s number one insurance brand Allianz has announced the launch of its new Divitharana Insurance product, in Sri Lanka which provides comprehensive life and health insurance for policyholders and their family. The product, which has been designed for the mass market, a segment that is highly price sensitive, comes with a host of benefits and features, making it a truly comprehensive insurance product that covers all of life’s important bases.
Commercial Bank of Ceylon Partnership with Insurance Companies
Commercial Bank of Ceylon has announced it has partnered with several insurance companies to offer special life and general insurance products with unmatched low premium rates exclusively for women customers, under the bank’s Anagi Women’s Banking portfolio.
Under this life insurance facility, a female customer of Commercial Bank between the age of 18 and 45 can sign up for a Rs.1 million policy by just paying an annual premium of Rs.1,100. The spouse can obtain the same policy for Rs.1,500. Women between ages 46 and 65 can opt for the same sum assured with an annual premium of Rs.2,200, if the policy is taken for themselves, or Rs.2,750, if the policy is taken to cover the spouse. The cover can be purchased at multiples of the unit rates of Rs.1,100 or Rs.2,200.
AIA Insurance offers an exclusive Health Policy to Corporate Employees
AIA Insurance offers an exclusive Health Policy to the senior management and all employees of Adapt Information Technologies (AIT), intended at ensuring their financial protection in case of any health problems for themselves and their entire family.
Conclusion
There is good reason to believe that Sri Lanka’s economic crisis could reach a resolution, and a pathway for future economic growth could emerge using the World Bank’s 4 starting points. One reason for this is because Sri Lanka was already taking steps to reduce poverty in the decades preceding the COVID-19 pandemic, with a 5.2% reduction in the rate of poverty by 2016, the accomplishment of near-universal electricity and labour growth in non-farming sectors. Extensive economic reforms are necessary in Sri Lanka in order to increase the country’s growth and uplift the Healthcare Sector.
For more information about the Country and Healthcare opportunities in Sri Lanka, you can visit the company website on www.hospaccxconsulting.com or contact us directly.
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