Business

Open Market Sale Option and the protection of minority investors’ interests

Published

1 year ago

2024/07/17

Sahan Weerasooriya

Ranil Pathirana

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.

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Business

Sri Lanka betting its tourism future on cold, hard numbers

Published

20 hours ago

2025/12/8

Thilina Walpola

“From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility holds its panel discussion

National Airport Exit Survey tells quite a story

Australia’s role here is strategic, not charitable

In a quiet but significant shift, Sri Lanka’s tourism sector is moving beyond traditional destination marketing and instinct-based planning. The recent launch of the “From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility and the Sri Lanka Tourism Development Authority, sent an unambiguous message: sentiment is out, statistics are in.

The initiative is anchored by a 12-month National Airport Exit Survey, a trove of data covering 16,000 travellers. The findings sketch a new traveller profile: nearly half are young (20–35), independent, and book online. Galle, Ella, and Sigiriya are the hotspots; women travellers outnumber men; and a promising 45% plan to return. This isn’t just trivia. It’s a strategic blueprint. If Sri Lanka Tourism listens, it can tailor everything from infrastructure to marketing, moving from guesswork to precision.

Tourists have a real sense of achievement after hiking the trail to Ella Rock

The keynote speaker, Deputy Minister Prof. Ruwan Ranasinghe called data “a vital pillar of tourism transformation.” Yet the unspoken truth is that Sri Lanka has long relied on generic appeals -beaches, heritage, smiles. In today’s crowded market, that’s no longer enough. As SLTDA Chairman Buddhika Hewawasam noted, this partnership is about “elevating how we collect, analyse, and use data.”

Australia’s role here is strategic, not charitable. By funding research and advocating for a Tourism Satellite Account, it is helping Sri Lanka build a tourism sector that is both sustainable and measurable. Australian High Commissioner Matthew Duckworth linked this support to “global standards of environmental protection” – a clear nod to the growing demand for green travel. This isn’t just aid; it’s influence through insight.

“The real test lies ahead,” a tourism expert told The Island. “Data is only as good as the decisions it drives. Will these insights overcome bureaucratic inertia? Will marketing budgets actually follow the evidence toward younger, independent, female travellers?,” he asked.

“The comprehensive report promised for early 2026 must move swiftly from recommendation to action. In an era where destinations are discovered on Instagram and planned with algorithms, intuition alone is a high-stakes gamble. This forum made one thing clear: Sri Lanka is finally building its future on what visitors actually do – not just what we hope they’ll do. The numbers are in. Now, the industry must dare to follow them,” he said.

By Sanath Nanayakkare

Business

New ATA Chair champions Asia’s small tea farmers, unveils ambitious agenda

Published

20 hours ago

2025/12/8

Thilina Walpola

New Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola

In his inaugural address as the new Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola placed the region’s millions of smallholders at the core of the global tea industry’s future, asserting they are the “indispensable engine” of a sector that produces over 90% of the world’s tea.

Udugampola, who is also Chairman of Sri Lanka’s Tea Smallholdings Development Authority, used his speech at the 6th ATA Summit held in Colombo on Nov. 27 to declare that the prosperity of Asian tea is “entirely contingent” on the resilience of its small-scale farmers, who have historically been overlooked by premium global markets.

“In Sri Lanka, smallholders account for over 75% of our national production. Across Asia, millions of families maintain the quality and character of our regional teas,” he stated, accepting the chairmanship for the 2025-2027 term.

To empower this vital community, Udugampola unveiled a vision focused on Sustainability, Equity, and Digital Transformation. The strategic agenda includes:

Climate Resilience: Promoting climate-smart agriculture and regenerative farming to protect smallholdings from environmental disruption.

Digital Equity: Leveraging technology like blockchain to create farm-to-cup traceability, connecting smallholders directly with premium consumers and ensuring fair value.

Market Expansion: Driving innovation in tea products and marketing to attract younger consumers and enter non-traditional markets.

Standard Harmonization: Establishing common regional quality and sustainability standards to protect the “Asian Tea” brand and push for stable, fair pricing.

Linking the alliance’s goals to national ambition, Udugampola highlighted Sri Lanka’s target of producing 400 million kilograms of tea by 2030. He presented the country’s “Pivithuru Tea Initiative” as a model for other ATA nations, designed to achieve this through smallholder empowerment, digitalization, and aligned policy objectives.

By Sanath Nanayakkare

Business

Brandix recognised as Green Brand of Year at SLIM Awards 2025

Published

20 hours ago

2025/12/8

Thilina Walpola

Brandix has championed best practices in the sphere of sustainable manufacturing over the years

Brandix Apparel Solutions was recognised as the Green Brand of the Year at the Sri Lanka Institute of Marketing (SLIM) Brand Excellence Awards 2025, taking home Silver, the highest award presented in the category this year.

The ‘Green Brand of the Year’ recognises the brand that drives measurable environmental impact through sustainable practices, climate-aligned goals and long-term commitment to protecting natural resources.

A pioneer in responsible apparel manufacturing for over two decades, Brandix has championed best practices in the sphere of sustainable manufacturing covering environmental, social, and governance aspects. The company built the world’s first Net Zero Carbon-certified apparel manufacturing facility (across Scope 1 and Scope 2) and meets over 60% of its energy requirement in Sri Lanka via renewable sources.

Head of ESG at Brandix, Nirmal Perera, said: “Being recognised as Green Brand of the Year is an encouraging milestone for our teams working across sustainability.”