| Harry's Empire
By Duruthu Edirimuni
The Sunday Times FT was able to crack the complicated company structure of Stassen Exports Limited, Milford Exports Limited and CBD Exports Limited which are manipulated and controlled by business tycoon Harry Jayawardena.
The tables below depict the complex structure in a simplified manner. Please note the interconnected shareholdings of different companies. Example- DCSL owns MHL which in turn owns BPL which in turn owns DCSL.
A table of abbreviations of company names is given in figure 2.
The holdings of the four main directors
|
SEL - Stassen Exports Limited
MEL - Milford Exports Limited
CDB - CDB Exports Limited
Figure 1
Shows the shareholdings of the four directors of the three companies.Please note how Harry Jayawardena has secured the most amount of shares in each company. |
|
BBH - Bentota Beach Hotel
HNB - Hatton National Bank
LMF - Lanka Milk FooFoods
DCSL - Distilleries
Company of Sri Lanka
MPL - Madulsima Plantations
Limited
BPL - Balangoda Plantations
Limited
ASpence - Aitken Spence &
Company
MHL - Milford Holdings (Pvt) Ltd
Figure 2
Shows the three main companies' structures getting complex with each buying into different companies either directly or indirectly. This is the secon tier spilling over into the third and fourth tiers.
This is the investment arm of DCSLwhich was established together with another subsidiary Aitken Spence & company Ltd and was used to conduct many of its acquisitions such as Sri Lanka Insurance Corporation Ltd, Lanka Bell (Pvt) Ltd and National Asset Management Ltd. |
The third tier in the empire
|
Figure 3
Shows the connection between SLIC and the third tier consisting MPL, BPL, ASpence, MHL , LankaBell and Sampath Bank of the company structure.
|
Distilleries Company of Sri Lanka (DCSL)
|
Figure 4 and 5 show the holdings by DCSL and SLIC, which have been making most forays into companies. |
SLIC acquisitions
|
Figure 5
Controlling stake of 75 percent at Sri Lanka Insurance Corporation Ltd (SLIC) was purchased in April 2003 by MHL which subsequently increased and now stands at 85.1 percent. This investment has given DCSL (refer figure 4) entrance to the valuable insurance sector and within three years under DCSL control, the company has shown a 47.4 percent compound growth in Turnover. More than 95 percent of the earnings are derived by three sectors, with beverages insurance, telecommunications and most recently healthcare .
|
|
