Colombo, Sri Lanka/ Washington, D.C., July 6, 2010
—IFC, a member of the World Bank Group, is partnering with Sri Lanka’s Asiri Group of Hospitals to help increase access to affordable high-quality health care in the country, improve best patient and clinical practice, create jobs, and provide training for medical professionals.
IFC’s $20 million equivalent loan will help expand and transfer operations of the existing 100-bed Asiri Central Hospitals to a new 262-bed facility owned by Central Hospital Ltd. It also will support the growth of other hospitals in the group.
“Asiri is gearing itself for the future by expanding bed strength and technological facilities,” said Ashok Pathirage, Managing Director, Asiri Group of Hospitals. “We are very happy to have IFC—with its knowledge of investing in private health care in developing and emerging countries—join forces with us.”
Part of IFC’s 10-year loan is denominated in Sri Lankan rupees, which will limit Asiri's exposure to foreign exchange risk. This is IFC’s first-ever Lankan rupee commitment using swaps and its introduction is expected to help develop the country’s long-term local currency swap market.
“The growing demand for quality health care in Sri Lanka and more people gaining access to medical insurance has created a tremendous potential for private health care,” said Elena Sterlin, IFC Manager for Health and Education, who attended the signing in Colombo. “Partnering with Asiri also sends a positive signal to investors about the attractiveness of financing private health projects in the country.”
Per Kjellerhaug, IFC Country Manager based in Colombo, said, “IFC’s presence will encourage Asiri to upgrade existing benchmarks for corporate governance; raise insurance, environmental and social standards; and improve operating practice. Compliance with international standards will have a strong demonstration effect on Sri Lanka’s health care sector and encourage other businesses to follow.”
IFC is the largest multilateral investor in private health in emerging markets and supports the growth of private health in developing countries in a sustainable and socially responsible way.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About Asiri Group of Hospitals
The Asiri Group of Hospitals is one of Sri Lanka’s largest health care groups with 460 beds in five hospitals in Colombo and Matara. Asiri also provides diagnostic services through its hospitals and at 300 collection points and 30 laboratories across the country. The group’s strategy is to grow through the expansion of existing hospitals, construction of new hospitals, and acquisition of smaller ones. Asiri operates a nurse training institute in Colombo to bridge the gap in supply of quality nurses. For more information, visit
www.asiri.lk.com
.
