The government had decided to abolish SAITM and establish a non-profit institution.

Thereby, Doctor Neville Fernando and his family will cease to hold any ownership rights on SAITM.

The new entity replacing SAITM will be under the supervision of Higher Education Ministry and University Grants Commission.

In keeping with the principle of justice to all stakeholders, the Government hopes to implement the following courses of action:

1. Abolishing SAITM (hereinafter SAITM means its Faculty of Medicine): This shall be done in a manner legally acceptable to the current shareholders, lending institutions and the new entrty interested in taking over all operations and management of SAITM on a not-for-profit basis, thus ending the ownership and management structure of SAITM. The profit oriented entity owned and managed by Dr. Neville Fernando and family would thereby cease to exist. 

2. By an agreement reached by the above parties, the assets, liabilities, staff of SAITM shall be transferred to a non-state, not-for-profit making (that will utilize any excess income over expenditure of the organization for development or research or scholarships, without distributing among shareholders) degree awarding entity that will comply with the Minimum Standards on Medical Education and Training (to be legislated).

3. The Government has consulted several already established non-state, notfor-profit entities with the objective of establishing the proposed not-for- profit entity for this purpose. Detailed discussions in this regard with interested parties shall start very soon.

4.The new entity shall recognize all students currently enrolled at SAITM, who possess the required entry qualifications. Opportunity will be afforded to these students to continue medical education in the proposed new institution. 

5. Issues in respect of former students who have completed their degree course at SAITM should be addressed on the advice of the Sri Lanka Medical Council, based on the determination of the Supreme Court case filed on the same. Arrangements shall be made for the said students who have completed the degree at SAITM to undergo clinical training at recommended government hospitals. 

6. Admission of medical students to SAITM has been suspended by the letter issued by the Secretary of the Ministry of Higher Education on September l5th 2017. This suspension will continue. Accordingly, all new admissions shall be made to the new entity (as described in 2 above), when only complying with the Minimum Standards on Medical Education and Training (to be legislated). The Government shall cooperate on all endeavors to make available, through financial institutions, subsidized student loan schemes to eligible students from low-income families to meet the cost of tuition and fees.

7. Current shareholders of SAITM shall not participate in the ownership or management of the new entity. The cooperation of Dr. Neville Fernando and family is extremely important in this regard. 

8. The Ministry of Health shall gazette and place before Parliament the agreed Minimum Standards for Medical Education and Training based on the Draft submitted by the Sri Lanka Medical Council (SLMC), upon conclusion of discussions with the SLMC, the Hon. Attorney General and other relevant stakeholders. 

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