The Government of Japan has agreed to provide a grant of Yen 2,298 million (approximately Rs.2900 million) for the development of Jaffna Hospital.

The Jaffna Teaching Hospital which is the only teaching hospital in the Jaffna peninsula was unable to adequately perform its functions during the terrorist activities in the area, due to the lack of necessary equipment and poor facility management.

After liberating the entire Northern province, the Government has accelerated the development in the Northern Province under the "Uthuru Wasanthaya" programme.

Under this project a new four-storied building will be constructed with an area of 6,870 square meters, to house a new operation theatre complex including intensive care units (ICUs), Central Supply & Sterilizing Department (CSSD), a new laboratory complex, Radiological Diagnosis Department and Neurology and Cardiology Unit with the necessary equipment.

The project will be implemented by the Ministry of Healthcare & Nutrition.