The Pereras – from friends to frenemies
Dhammika Perera
In one of the most stunning developments in Colombo’s stock market and political circles, the seemingly, inseparable duo of Dhammika Perera and Nimal Perera parted company this week, bringing the curtain down on a 17-year partnership of hostile take-overs of large groups and, accumulating wealth on the way.
While the market and even political circles were still grappling with the news of the ‘split’, Nimal Perera spoke of plans to get into politics among other interests and stressed that he will continue to be friends with the more powerful Perera (Dhammika).
While it is believed that an argument between the two at a corporate board meeting on Monday, triggered Nimal Perera’s sudden decision to resign from all Dhammika Perera-controlled companies, industry officials were skeptical. “There is much more than meets the eye in this drama and I believe one argument was not the cause,” one corporate leader said, while also acknowledging that the two businessmen has had strained relations in recent years.
Nimal Perera
Despite many calls, Dhammika Perera wasn’t reachable for comment.
Among their biggest raids, in some circles it is called an ‘achievement’, was the take-over of the Hayleys Group, Sri Lanka’s most respected conglomerate, some years ago. Another ‘legal’ raid in the market was when businessman Dilith Jayaweera was joined by Nimal Perera in taking control of George Steuart, another British colonial group.
The take-overs masterminded by the two Pereras not only stunned the market and political circles, also to some extent benefitted by close ties to the Mahinda Rajapaksa-administration, but also propelled them to the top of Sri Lanka’s creme de la creme corporate circles.
The drama began on Tuesday, a day after a rumbustious board meeting of Royal Ceramics PLC which saw the spat between the two Pereras, Nimal Perera decided to resign as Managing Director of the company. On Wednesday, like a fountain, he quit from several companies controlled by Dhammika and followed up with more resignations on Thursday, giving little time for inquisitive stock brokers to breathe. On Friday, brokers were still in shock, guessing, assuming and pondering on the split but nowhere near the truth, which is yet to come. In political circles the guessing game was on though most people were inclined to believe that Nimal Perera would, if he eventually decides to get into politics, throw his hat in the Rajapaksa ring. On the other hand there was also speculation that he may be more a funder than an active participant in Sri Lanka’s hurly-burly political games.