Sri Lanka Health PPPs have come into focus as the country places healthcare reform high on its policy agenda following Cabinet approval to expand advanced diagnostic services in government hospitals. Demand for diagnostic tests has increased steadily as non-communicable diseases continue to spread nationwide. Official health statistics show that NCDs account for more than 80% of all deaths in Sri Lanka. As a result, public hospitals face growing pressure to provide timely CT scans, MRI services, cardiac catheterization, angiography, and advanced laboratory testing. However, many hospitals still lack this essential equipment. Waiting lists remain long, especially outside Colombo. In several regions, patients wait weeks for diagnostic scans. These delays slow clinical decisions and raise out-of-pocket costs for families.
At the same time, limited budgets constrain the government’s ability to purchase and maintain high-value medical technology. Procurement processes often take months, while maintenance contracts add recurring expenses. To address these challenges, the Cabinet approved a proposal from the Minister of Health and Mass Media to obtain diagnostic services through PPP arrangements. Under this model, private partners will supply, operate, and maintain the equipment. Payments will link directly to service delivery and performance benchmarks. As a result, the public sector avoids large upfront costs, while hospitals gain quicker access to modern diagnostic services. Importantly, government doctors will continue to exercise full clinical control over patient care and referrals.
Alongside diagnostics, Sri Lanka Health PPPs will also support the expansion of hemodialysis services in public hospitals. Chronic kidney disease continues to affect thousands of patients, particularly in rural and farming communities. Although around 80 government hospitals currently provide dialysis, capacity remains insufficient. Health officials estimate that existing facilities meet only about two-thirds of national demand. Consequently, many patients must travel long distances or receive fewer dialysis sessions than medically advised. These constraints place additional strain on patients and families, while also affecting treatment outcomes.
Looking ahead, such Health reform reflect a broader shift toward outcome-based healthcare delivery. Many countries now rely on similar models to expand access to specialized services without placing excessive pressure on public finances. Across Asia, PPPs have helped governments modernize hospitals, upgrade laboratories, and improve service continuity. Sri Lanka has already recorded positive results from earlier PPP initiatives in diagnostics and support services. These projects improved equipment availability and reduced service disruptions across several facilities.
The latest Cabinet approvals aim to ease patient hardship and improve equity between regions. Faster access to diagnostics will enable earlier treatment decisions. Expanded dialysis services will reduce travel burdens for vulnerable patients. At the same time, performance-linked payments will encourage private partners to maintain high service standards. For the government, PPPs offer predictable spending and measurable outcomes. As healthcare demand grows alongside an aging population, these partnerships provide a practical and scalable path forward. If implemented effectively, Sri Lanka Health PPPs could set a benchmark for future public healthcare reforms and strengthen confidence in public-private collaboration.
