Financial Times

Debt-ridden Vanik invests in leisure sector
By Duruthu Edurumuni
Despite being saddled with debts, the Vanik Group is venturing into the leisure sector. The group's money-broking arm, Vanik Moneybrokers, is planning an upmarket campsite in Mahakumbukkadawala, 14 km from Puttalam town, to be open in mid-November.

"Vanik is looking to diversify through its subsidiaries and this project is being handled by Vanik Moneybrokers," Mano Ratnayake, CEO, Vanik Moneybrokers said adding the eco friendly campsite is being built with an investment of over Rs 3 million. Six luxury tents are to be built on the site, which is located within two km of two large natural tanks.

The luxury tented camps will be built on a 12-acre area, amidst a shrub jungle situated within a 100 acre teak plantation owned by Vinketh, another subsidiary of Vanik, which deals in commercial forestry. Ratnayake said the company is looking to attract travellers going to Wilpattu. "We will be providing excursions to exotic areas including Kalpitiya where the largest mangroves in Sri Lanka are situated and wetland areas in Puttalam such as Anawillundawa," he said. The campsite will have swimming pools to add value.

Unlike the parent company, Vanik Moneybrokers along with the other subsidiaries have made profits consistently. "We have made profits for the last 12 years, since our existence," Ratnayake said. However, the profits earned by auxiliary companies are not sufficient to service Vanik's debts. Last year Vanik paid Rs. 540 million to creditors and this year so far it has paid Rs. 500 million. "Up to now we have reduced our liabilities by Rs 5 billion," D. J. M. Meegoda, CEO/President of Vanik Incorporation Ltd, said. He said that there are debts amounting to Rs 2 billion more.

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