Restructuring / Privatization / Liberalization

Commencing mid 90s and extending to early 2000s, several SOEs including Sri Lanka Telecom, Sri Lanka Insurance Corporation and SriLankan Airlines were privatized. The In-House Counsels of Capital City Law have unparalleled experience in all major privatizations so carried out, while having worked alongside local and international Consultants, Financial Advisors and Legal Advisors appointed to assist the transactions.

Mr. Jayawardana has acquired hands on experience during the tenure of office at the Attorney General’s Department having actively participated inter alia in the following large transactions as a leading member of the Legal Advisory Team. The Key transactions being;

• Restructuring of Sri Lanka Ports Authority to create the new Container Terminal operating company, the South Asia Gateway Terminals (SAGT) Limited.
• Subsequent restructuring of the Ports Authority to create the parallel container terminal operating company Jaye Container Terminals Limited, the shares of which are owned by the GOSL and the Ports Authority of Sri Lanka.
• Privatization of the National Carrier Sri Lankan Airlines.
• Privatization of Sri Lanka Telecom Limited.
• Restructuring of Plantation Companies.
• Restructuring of Insurance sector Institutions.

Mrs. Gunawardana has acquired the following hands on experience during her tenure of office as the Secretary to the Commission and Director –Legal of the Privatization arm of the Government – Public Enterprises Reform Commission (PERC);

• serving as a member of the core team that prepared Expressions of Interest (EOIs), Request for Proposals (RFPs) etc. with regard to entities being privatized and assisting structuring and drafting of related agreements and other documents
• Participating in negotiations with prospective investors towards the finalization of related agreements while working alongside local and international Consultants/ Financial Advisors/ Legal Advisors.
• Essisting to address regulatory concerns in consultation with the relevant regulatory agencies,
• Engaging in discussions with the officials of the Attorney General’s Department to have the related agreements approved by the Hon. Attorney General,
• Drafting post-transaction reports to be submitted to the Parliament,
• Dealing with post-privatization matters.

Key Transactions

Sri Lanka Telecom

Divestiture of a 35% stake of the state owned Telecommunication Company with a specified management control, to Nippon Telegraph and Telephone (NTT) Corporation of Japan. (1996)

Sri Lankan Airlines

Divestiture of 40% of government shares with a specified management control of the national carrier, to Emirates of Dubai. (1998)

Sri Lanka Insurance Corporation

Privatization of the government owned Insurance Company to Distilleries Consortium (1996)

Plantation Companies

Privatization of several plantation companies owned by the State /State Institutions and facilitating the listing of some of the Companies in the Colombo Stock Exchange. (1990s)

Steel Corporation

Privatization of the government owned Steel Manufacturing Company to Hanjung Corporation Ltd. of Korea. (1996)

National Development Bank debenture conversion

Conversion of government debentures into shares and divestiture of same Government shares through a domestic/international share offering (1999 to 2001).

Liberalization of the Lubricant Industry

Issuance of lubricant licenses to Castrol Asia Pacific, Shell Trading Middle East, Indian Oil Corporation, Mobil Asia Pacific Valvoline International and BP Middle East. (1996)

Other privatization transactions include the restructuring/ privatization of Mattegama Textile Mills Limited, National Insurance Corporation of Sri Lanka, State owned agricultural and livestock farms, the two state owned graphite companies, Colombo Commercial Engineering Company, Sevenagala Sugar Industries Limited and Lanka Marine Services Limited.

Conversion of the 25 year BOT arrangement with Prima of Singapore, pertaining to the construction and operation of a flour milling complex to a BOO arrangement, along with the liberalization of the importation, manufacturing and distribution of wheat flour in Sri Lanka, was also carried out in 2001.