INSUBCONTINENT EXCLUSIVE:
The State-Owned Enterprise Restructuring Unit (SRU) of the Finance Ministry has officially released the names of the local and foreign firms
that have submitted responses to the respective requests for quote and the shortlisted bidders for the divestiture of shares held by the
Government of Sri Lanka in several key state-owned enterprises (SOEs).Issuing a press release, the SRU also said that it is envisaged that
all SOE transactions other than SriLankan Airlines will be concluded by August 2024 and that the timeline for SriLankan Airlines is likely
held by the Government of Sri Lanka in Hotel Developers Lanka Ltd (HDL, owners of Hilton Colombo), Canwill Holdings Pvt Ltd (CHPL, owners of
Grand Hyatt Colombo), Lanka Hospitals Corporation PLC (LHCP), Sri Lanka Telecom PLC (SLT), SriLankan Airlines Ltd (SLA), Litro Gas Lanka
Ltd/Litro Gas Terminals (Pvt) Ltd (together LITRO), Sri Lanka Insurance Corporation Life Limited and Sri Lanka Insurance Corporation General
Ministers approved Divestiture Guidelines that set out the framework when divesting a state-owned entity
These guidelines ensure greater transparency and accountability and provide investors the confidence of a credible process
The Cabinet of Ministers also appointed Special Project Committees (SPC) for each entity being divested together with a Special Cabinet
the Request for Qualification (RfQ) and Request for Proposal (RfP) documents and for evaluating proposals received
The SpCANC comprising of senior public officers was tasked with validating the work of each SPC including the clearance of all RfQ and RfP
documents, shortlisting bidders and making recommendations to the Cabinet of Ministers as mandated by the Divestiture
international press, while industry specific publications were also used as appropriate
Further, social media platforms such as LinkedIn and WeChat were also used
Prior to the RfQs being published, the respective TAs approached both appropriate entities within the respective sectors and financial
services firms, locally and internationally, to canvas the divestitures.As at date, pre-bid meetings have been held for all entities
identified for divestiture
Clarifications raised at the pre-bid meetings and the responses provided were subsequently published on the website of the Treasury to
ensure greater transparency
In certain instances, at the request of potential bidders and with the advice of the TAs and with approvals of the SPC and SpCANC, the RfQ
closing dates were extended to foster greater competition
Such extensions were also published on the Treasury website.Deadlines for the submission of RfQs for HDL, CHPL, LHCP, SLT, SLIC and LITRO
The responses received were evaluated by the respective SPC and the SpCANC and bidders were shortlisted as follows for the RfP
bidders
Hotel Developers Lanka Ltd
Chalet Hotels Limited (India)
Le Park Concord Hotels (Saudi
Arabia)
International Trade Promoters (Canada)
Unison Hotels Private Limited (India)
Eagle Hills Regional Properties LLC
(UAE)
KSK Capital LLC (UAE)
Bestinet Sdn Bhd (Malaysia)
Melwa Hotels - Resorts Private Limited (Sri Lanka)
Kalyan Toll
Infrastructure Ltd (India)
Chalet Hotels Limited (India)
Unison Hotels Private Limited (India)
KSK Capital LLC
Ltd
RKG Fund I- Scheme of RKG Trust (India)
Kala Investments (Pvt) Ltd (Sri Lanka)
Bestinet Sdn Bhd
(Malaysia)
Le Park Concord Hotels (Saudi Arabia)
Gland Celsus Bio Chemicals Private Limited (India)
DB Realty Limited
(India)
Jindal Films India Limited (India)
Bright Star Investments Private Limited (India)
Consulting Engineers and Contractors
(Pvt) Ltd (both Sri Lanka)
RKG Fund I- Scheme of RKG Trust (India)
Gland Celsus Bio Chemicals Private Limited
(India)
DB Realty Limited (India)
Jindal Films India Limited (India)
Bright Star Investments Private Limited
(India)
Consulting Engineers and Contractors (Pvt) (Ltd) and K.D.A
(Pvt) Ltd (both Sri Lanka)
Lanka Hospitals Corporation PLC
Apollo Hospitals Enterprise Limited
(India)
Sri Kauvery Medical Care (India)
Green Capital Private Advisers SDN
BHD (Malaysia)
Sunshine Holdings PLC with Ceylon Hospitals PLC (both Sri Lanka)
Hemas Holdings PLC (Sri Lanka) with Narayana
Hrudayalaya Limited (India)
Asiri Hospital Holdings PLC (Sri Lanka)
HAIMS International Limited (UK)
International Hospitals
Group Limited (UK)
Apollo Hospitals Enterprise Limited (India)
Sri Kauvery Medical Care (India)
Sunshine Holdings
PLC with Ceylon Hospitals PLC (both Sri Lanka)
Hemas Holdings PLC (Sri Lanka) with Narayana Hrudayalaya Limited (India)
Asiri
Hospital Holdings PLC (Sri Lanka)
Sri Lanka Telecom PLC
Jio Platforms Ltd (India)
Gortune
International Investment Holding Ltd (Hong Kong)
Pettigo Comercio International LDA (Portugal) with Lycamobile SARL
(UAE)
Confidence Petroleum India Limited (India)
OQ Trading Limited (UAE)
Tristar Group (UAE)
Laugfs Gas PLC (Sri
Lanka)
United Petroleum Holdings (Malaysia)
Vitol Asia Pte Ltd (Singapore)
Infinity NGC (Sri Lanka)
China National Aero
Techno (Sri Lanka)
Consulting Engineers - Contractors (Sri Lanka)
Shortlisting to be completed
Sri
Lanka Insurance Corporation Life Ltd.
Life Insurance Corporation (Lanka) Limited (Sri Lanka)
Union Assurance PLC
(Sri Lanka)
Consortium of Asiri Hospital Holdings PLC - Softlogic Life Insurance PLC (Sri Lanka)
Shortlisting to be
completed
Sri Lanka Insurance Corporation General Ltd.
Euro Exim Bank Ltd (St
for purposes of buy-side due diligence
Thereafter, the shortlisted bidders will be required to respond to a RfP and proposals received will be evaluated by the respective SPC and
envisaged that all transactions other than SriLankan Airlines will be concluded by August 2024
to set up a structured, efficient and well governed process to manage the SOE sector going forward
This is part of the overall reform program of the government and aims to transform SOEs in to well governed, competitive and financially
disciplined entities that provide citizens with essential goods and services effectively and efficiently without being a drain on public
An SOE Reforms Policy based on these objectives was approved by the Cabinet of Ministers in May 2023
The policy includes a sound mechanism to ensure the appointment of qualified, experienced and capable persons to the boards of both the
Similarly, it lays down principles and policies around governance, financial discipline and disclosures which the Holding Company and all
SOEs will need to adhere to
briefings and consultations were undertaken in order to fine tune the broad SOE reform agenda and to convey information on the divestiture
Discussions were held with leaders of the main political parties, trade unions, religious leaders and media professionals
Professional bodies such as the Institute of Chartered Accountants of Sri Lanka, Sri Lanka Institute of Engineers, Sri Lanka Institute of
Development Administration and the Organization of Professional Associations of Sri Lanka were also briefed at sessions open to their
underperforming, debt-ridden, Sri Lankan economy is to transition into a competitive, dynamic and prosperous environment, SOE reforms are
These reforms will ensure that resources are released for investment in essential but under-resourced public service obligations such as
education, healthcare, energy, transportation and digitization
