Business
Open Market Sale Option and the protection of minority investors’ interests
By Ifham Nizam
Minority investors have the option of selling their shares in the open market through the Colombo Stock Exchange (CSE) at any time via an Open Market Sale, a top Chartered Accountant cum experienced corporate leader said.
Cable Solutions Ltd (CSLK) is set to launch its Initial Public Offering (IPO) on July 23, Hirdaramani Group of Companies, Director, Ranil Pathirana explained. He expects his company to maintain sufficient liquidity. He told The Island Financial Review in an interview that CSLK is Sri Lanka’s sole integrated cable manufacturer and a subsidiary of the ACL Group.
Excerpts of the interview:
Q: What is your dividend policy, and how are dividends distributed among shareholders?
Subject to affordability, the company intends to pay out a minimum of 30% of annual net profit as dividends to shareholders.
The Company has paid USD 196,847 (LKR 35.2 Mn) for FY20 and approximately 30% of its net profit for FY21 and FY22 as dividends to its shareholders preceding the date of this Prospectus. The company has paid a dividend of USD 371,190 (LKR 132.0 Mn) for FY23 which amounts to approximately 30% of the reported net profit of USD 1.51 Mn (LKR 536.7 Mn) for the financial year ended March 31, 2023. The company has paid a dividend of USD 200,000 (LKR 60.2 Mn) for FY24 which amounts to approximately 30% of the reported net profit of USD 671,738 (LKR 210.8 Mn) for the financial year ended March 31, 2024.
Q: Are there any plans for future dividend increases or changes in distribution policies?
There will be no significant alterations to the dividend policy. They will continue to adhere to the historical dividend policy moving forward.
Q: What options do minority investors have if they want to sell their shares?
Minority investors have the option to sell their shares in the open market through the CSE at any time via an Open Market Sale. We anticipate the stock will maintain sufficient liquidity.
Q: What measures are in place to protect minority shareholders’ interests?
Measures have been implemented to safeguard the interests of minority shareholders in accordance with company law and Company’s corporate governance code.
Q: What is the company’s competitive advantage in the market?
Loyal customer base:
*Proven track record servicing 30+ long-standing customers worldwide
*Benefit from its status as an approved supplier to large corporate entities
*There is a high switching cost for clients, as the products given by CSLK to them have been approved by their customers for their final product. For instance, Jet Ski manufacturers have established trust in the supply chain, and clients of CSLK who provide cables to manufacturers, have already obtained approval for the parts, which would make it difficult for the client to switch suppliers.
*Extensive expertise in ‘Customised’ cable solutions – Cable Solutions has evolved into a prominent player renowned for manufacturing high-quality cables & harnesses tailored to meet specific needs. The company is a leading exporter with the strategic backing of ACL Cables PLC. With production facilities located in Sri Lanka and recently expanding into India, the company specializes in delivering customised solutions to high-growth industries, such as, automotive, renewable energy, telecommunications, aerospace and others within the electronics supply chain.
*First to receive the TUV Certificate from Germany to produce high quality cables for the Solar Industry
*Exclusive export advantages through BOI registration
Q: How does the company plan to maintain or enhance its market position?
*A strong commitment to quality control will enhance the company’s reputation, foster customer trust, and provide a competitive edge in the cable manufacturing industry.
*Continuous investments in R&D enable the creation of high-performance cables with enhanced durability, efficiency, and safety features but also solidify the Company’s reputation as an industry leader.
*Obtaining internationally accepted certifications is also explored.
*Improvements are made in production processes along with investment in new machinery to improve efficiency.
Q: What are the growth prospects for the company and the industry it operates in?
*Load Cell Industry: The global market for Load Cell is projected to reach USD 276.4 Billion by 2030, growing at a CAGR of 3.3%. Factors like Increasing Demand across Industries (medical & pharmaceuticals, food & beverage, etc.), Rapid Industrial Automation & Adoption in Healthcare Settings can be considered as driving forces behind the growth of the industry.
*Automotive Industry: The automotive industry is projected to reach USD 6,070.4 Billion, with a CAGR of 6.9% by 2030. The European automotive ecosystem is evolving rapidly, with over 65% of new cars expected to be fully electric by 2030, driven by customer preferences, regulations, and government subsidies.
*Process Instrumentation Industry: The global Process Instrumentation market is growing at a CAGR of 4.37% to reach USD 31.87 Billion by 2030. Factors such as Rising Industrial Automation, *Stringent Regulations and Standards, Technological Advancements, Increasing Demand for Energy & Rising Demand for Wastewater Treatment can be considered as driving forces behind the growth of the industry.
* Renewable Energy / Solar Power Industry: The global solar market size is expected to reach USD 373.84 Billion by 2029, growing at CAGR of 6.9%. The market growth is attributed to factors, such as, rising electricity costs, growing adoption in developing countries, increasing demand for renewable energy due to ESG factors.
* AI & Automation Robotics Industry: CSLK’s future strategy mostly targets the AI & Automation Robotics industries.
Global oil prices have risen after at least three ships were attacked near the Strait of Hormuz, as Iran continues to launch strikes across the Middle East in response to ongoing attacks by the US and Israel.
Two vessels have been struck, and an “unknown projectile” was reported to have “exploded in very close proximity” to a third, the UK Maritime Trade Operations Centre (UKMTO) said.
Iran has warned ships not to pass through the strait, which carries about 20% of the world’s oil and gas.
International shipping has almost come to a standstill at the strait’s entrance, with analysts warning that a prolonged conflict could push energy prices even higher.
In early trade in Asia on Monday, global oil prices jumped by more than 10% before those gains eased during the morning.
At 02:00 GMT, Brent crude was more than 4% higher at $76.16 (£56.53) a barrel, while US-traded oil was also up by around 4% at $69.67.
“The market isn’t panicking”, Saul Kavonic, head of energy research at MST Research told the BBC.
“There is more clarity that so far, oil transport and production infrastructure hasn’t been a primary target by any side,” he added.
“The market will be watching for signs that traffic through the Strait of Hormuz returns, which would see oil prices subside again.”
But some analysts have warned it could go over $100 in the event of a prolonged conflict.
On Sunday, the Opec+ group of oil producing nations – which includes Saudi Arabia and Russia – agreed to increase their output by 206,000 barrels a day to help cushion any price rises, but some experts doubt this would help much.
Edmund King, president of the AA, warned the disruption could drive up petrol prices around the world.
“The turmoil and bombing across the Middle East will surely be a catalyst to disrupt oil distribution globally, which will inevitably lead to price hikes,” he said.
“The magnitude and duration of pump price increases depends on how long the conflict goes on.”
The U.S. and Israeli strikes on Iran have reignited geopolitical tensions in the Middle East, stoking fears of a broader conflict that could disrupt critical energy supply routes – particularly the Strait of Hormuz, through which roughly one-fifth of the world’s oil supply flows. Brent crude has already edged higher, and global oil markets warn prices could climb toward, or even exceed, US$80–100 a barrel if hostilities escalate.
Against this backdrop, an independent economic analyst told The Island that for Sri Lanka – a small, fuel-importing economy with limited domestic energy resources – the implications could be significant.
“Sri Lanka imports over 90% of its petroleum requirements, and any sustained rise in global crude prices would expand the annual import bill, placing renewed pressure on already tight foreign exchange reserves,” he said.
Even moderate spikes in oil prices, he noted, tend to filter quickly through the domestic economy. “Higher fuel costs translate into increased transport and production expenses, which feed into inflation and erode household purchasing power. Freight charges for essential goods – from food items to industrial inputs – would also rise.”
“The Middle East remains a key source of remittances and export demand,” the analyst explained. “A large share of Sri Lankan migrant workers are employed in Gulf economies, while regional markets absorb tea and other exports. Heightened instability could weaken remittance inflows and soften demand, further straining the balance of payments.”
When asked whether the Central Bank of Sri Lanka (CBSL) might be compelled to shift policy in response, the analyst said the monetary authority faces a delicate balancing act.
“Rising import inflation stemming from higher global energy prices could push the Central Bank to maintain – or even tighten – its monetary policy stance in order to safeguard price stability and support the rupee. A firmer stance may be deemed necessary to anchor inflation expectations and preserve market confidence. The Central Bank is therefore likely to monitor inflation data closely in the coming weeks to assess whether energy-driven price pressures prove temporary or more entrenched,” he said.
Meanwhile, Ceylon Petroleum Corporation (CPC) Chairman S. Rajakaruna said that Sri Lanka’s fuel imports – sourced primarily from Singapore and India – reduce immediate exposure to supply disruptions directly linked to Middle Eastern routes. He also sought to allay public concerns, noting that the country currently maintains sufficient fuel stocks for approximately one month and that there need not be any queueing up by the public to hoard supplies.
However, the analyst cautioned that while physical supply may remain stable, global price pass-through effects are an unavoidable risk.
Meanwhile, Opposition politician Wimal Weerawansa said that official assurances of “one month’s stock” tend to unsettle the public, arguing that such statements evoke memories of past shortages and public distress.
By Sanath Nanayakkare
The Ministry of Education officially recognised LOLC Holdings PLC for its flagship humanitarian initiative, Divi Saviya, at a special ceremony held on 27th February 2026 in Battaramulla. The event marked the second time the Ministry has acknowledged the programme’s contribution to the nation’s education sector.
Group Managing Director/CEO Kapila Jayawardena presented a project update to Prime Minister and Education Minister Dr. Harini Amarasuriya, highlighting the rapid restoration of 200 schools under Phase 02 of ‘Obai, Mamai, Ape Ratai’. The schools were repaired and handed over within just 45 days, enabling students displaced by Cyclone Ditwah to safely resume learning.
Phase 02 follows a needs assessment that identified 200 damaged schools and 4,000 displaced families. Implemented with Divisional Secretariats and Disaster Management Centres, the Rs. 500 million programme has delivered Family Super Packs and school renovations across six districts.
Kapila Jayawardena stated, “It was a privilege to share these outcomes with the Prime Minister. This recognition reflects how private sector collaboration can complement government efforts during national challenges.” Plans are underway to fully rebuild select schools destroyed by the cyclone.
PCB fines Pakistan players for underwhelming T20 World Cup campaign
Iran strikes Qatar and Saudi energy sites as US jets shot down by Kuwaiti ‘friendly fire’
India and Canada agree series of deals as Carney and Modi reset ties in Delhi
Oil prices rise after ships attacked near Strait of Hormuz
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