LTL Holdings to restructure its ownership for profitability
LTL Holdings (Pvt) Ltd, which started off as a Ceylon Electricity Board (CEB) subsidiary 34 years ago to produce transformers as a joint venture with Bonar Long (later ABB-Norway), is planning to restructure the ownership for better operational flexibility, a Power and Renewable Energy Ministry official said. The company has sought the approval of the Cabinet to broad-base the ownership and dilute the CEB’s stake in order to maximise profits. The Cabinet Committee on Economic Management (CCEM) has given its consent to proceed with the restructuring of ownership of LTL Holdings after obtaining Cabinet approval. The CEB holds 63 per cent of the shares of this company with the balance held by a trust representing employees and other stakeholders. There are 15 subsidiary companies coming under LTL Holdings.
LTL has operations in thermal, hydro and wind power generation including 24MW Lakdhanavi Power Plant, 100MW Heladhanavi Power Plant in Puttalam and the Kerawalapitiya Power Plant. It has power plants in Bangladesh too. Each of these investment companies (subsidiaries of LTL) has different investors while LTL retains a majority. Today LTL is one of the very few Sri Lankan brands known internationally. More than 60 per cent of its transformer output is now produced for exports, company officials revealed. Meanwhile a new Liquid Natural Gas (LNG) is to be set up in Hambantota in a business partnership with LTL Holdings (Pvt) Ltd. A separate company will be formed to execute the project on Built Operate and Transfer basis. The LNG power plant will be set up by using a Chinese sovereign grant to Sri Lankan Government. In terms of the Sri Lanka Electricity Act No 31 of 2013, this project will have to be included in the least cost long term electricity generation expansion plan of the Public Utilities Commission of Sri Lanka.