Page and Perera in goodwill gesture

In a gesture of reciprocity, powerful businessman Dammika Perera appointed a director of Lanka Ceramics Ltd (LCL) controlled by the Page family, has in turn brought Baba Page on the board of Pan Asia Banking Corporation (PABC) which the former controls."This was not only done through goodwill, but to strengthen the PABC board, because we felt the need for a chartered accountant at the board level," Nimal Perera, Deputy Chairman PABC told The Sunday Times FT.

Late last month Dhammika Perera, also Chairman of the Board of Investment, was appointed a director of LCL with Nimal Perera as his alternate by the Page family. LCL is the holding company of Lanka Walltiles Ltd, Lanka Tiles Ltd and Kahawatte Plantations Ltd. The Page family of Cargills fame controls 51 percent of LCL. Nearly one and a half years ago, Dammika Perera who owns Royal Ceramics Ltd (ROCELL), lapped up 20 percent LCL shares from the market, which pushed the Page’s to put their guard up by increasing their 51 percent holding to 57 percent. ROCELL subsequent increased its holding to 25 percent.

Nimal Perera, also Managing Director ROCELL, asked why such a transaction took place then, said, “We gradually increased the stake to 25 percent to have a synergy with LCL,” When asked how the directors of LCL co-exist with their competitors at ROCELL on the same director board, Perera insisted that it is ‘friendly’ competition. “They have their own market share and we have ours. How we benefit is LCL has a lot of ball clay (raw material for tiles) mines. Now we can source raw materials from those mines,” he said.

He also noted that both firms have large plans to venture into the region as one entity. “Both companies can venture together to India, Bangladesh, etc and strike a good synergy in those countries, because when the structure is big, we can go out there easily,” he explained, adding that both the firms can now also control their suppliers better.
LCL is now an associate company of ROCELL.