Apollo: Reddy or not?

By Duruthu Edirimuni

Apollo Hospitals India founder Dr. Prathap Reddy is so annoyed with his hospital been ‘forced’ out of Sri Lanka that he doesn’t want to visit the country, according to sources close to him but the new owners are still reaching out to the hospital magnate.

“Sri Lanka Insurance Corporation (SLIC) directors are apparently interested in retaining the Apollo name but Dr. Reddy is quite simply disappointed in having to move out of Sri Lanka, because Property Development Ltd (PDL) owned by the Bank of Ceylon did not ‘back’ him up against Harry Jayawardena”, a source close to Dr. Reddy told The Sunday Times FT.

He said that despite the BOI claiming to back Lanka Hospitals Corporation Limited (LHCL), Apollo Colombo’s holding company, PDL didn’t consent to signing an agreement firming the government’s commitment.

“Governments may change therefore LHCL wanted an agreement with PDL saying that the latter’s backing will stay true irrespective of any government change, but they did not agree,” he explained, adding that this development literally forced LHCL to sell their shares to Jayawardena.

“If at all SLIC will have to visit Dr. Reddy in India and not vice versa,” he said.

However LHCL sources are of a quite different view, saying that Jayawardena and Dr. Reddy are in touch with each other. “Dr. Reddy is coming here, but we are not very sure of the dates. Mr, Jayawardena is in touch with him,” one source added. He said that LHCL wants the Indian doctors to remain in the country but some are leaving.

Ajith Jayaratne, new chairman of LHCL told The Sunday Times FT that the company has ‘not yet moved towards changing the hospital's name’.