Expropriated enterprises offered to listed firms, leading private businesses

Several publicly listed firms and leading business houses in the country have been offered some of the enterprises that were vested with the government under the Revival of Underperforming Enterprises or Underutilized Assets Act in 2011.

According to the 2012 annual report of the Ministry of Finance and Planning, over 15 companies out of the 37 acquired, have been offered to new investors for revival.

Among the prominent names of the new investors have been MAS, Brandix, Expolanka, DIMO, Piramal Glass, JAT Holdings, Concord Apperal and Sterling Jercy.

The manufacturing facilities of Sinotex (Lanka) Ltd, a major apparel manufacturer who shut down operations in 2009 have been given to Brandix Lanka, Expo Lanka, Preit Pvt. Ltd, Kansay Nerolac Paints Ltd and JAT Holdings for revival.

The land belonging to Adamjee Extractions (Pvt) Ltd, a unit of Vanaspati operations in Sri Lanka has been given to Piramal Glass Pvt Ltd. while Continental Vanaspati (Pvt) Ltd. has been given to BCC Lanka

The two garment manufacturing facilities, Tendon Lanka (Pvt) Ltd and Hy Fashion Garments (Pvt) Ltd. have been offered to MAS Industries and Concord Apparel Ltd, respectively.

Another facility belonging to Tendon Lanka has been offered to DIMO Lanka. However, according to DIMO Lanka Chief Ranjith Pandithage, his company is unlikely to proceed with the venture.

According to Tuly Cooray, who was appointed Competent Authority for the Board of Investment (BoI) enterprises acquired under the Act, the businesses were leased out to these firms for a 35-year lease period.

“No sooner these companies were taken over, a public notice was published in 9 daily newspapers calling for investment proposals to revive them. New investors were selected upon the soundness of their proposals and there was no competitive bidding as such,” Cooray told Mirror Business explaining the selection criterion.

He further explained that the lease payment was determined upon the valuations of the government’s Chief Valuer.

The government-appointed three Competent Authorities to revive the 37 enterprises and assets which it took over from the private sector. Furthermore, it appointed a Ministerial Sub Committee and an Officials Committee to monitor activities of the 37 enterprises and assets.