Sri Lanka and India today signed a Memorandum of Understanding (MoU) to provide modern medical equipment worth Rs. 600 million for the new Deniyaya Base Hospital.
The agreement was signed at the Ministry of Health under the patronage of Health Minister Nalinda Jayatissa, with Health Secretary Dr. Anil Jasinghe and Santosh Jha signing on behalf of the two countries.
According to the Ministry of Health, the initiative is part of India’s “Aftermath Cyclone Ditwah Project”, which aims to restore health infrastructure damaged by the cyclone. Under the project, essential medical equipment will be provided to the relocated Deniyaya Base Hospital to improve the quality, safety and efficiency of healthcare services for residents of Deniyaya and nearby areas.
Minister Jayatissa said the agreement reflects the longstanding friendship and cooperation between Sri Lanka and India. He thanked the Government of India and the Indian High Commission in Colombo for their support, noting that the equipment will enhance diagnostic and treatment services while strengthening healthcare delivery in the Matara District.
The new hospital is being relocated as the existing facility is vulnerable to landslides and lacks space for expansion. The new site, located at Handford Estate about three kilometres from Deniyaya town, was selected following geological and technical assessments.
The Ministry plans to construct a 300-bed modern hospital in two phases at an estimated cost of Rs. 6 billion. The first phase will include medical, surgical, pediatric and maternity wards, operating theatres, an intensive care unit, an accident and emergency unit, and a blood bank, along with dedicated access roads and official quarters for healthcare staff.
Construction is expected to begin this year and be completed within three years, with the hospital designed as an environmentally friendly, disaster-resilient facility capable of future expansion.



