Ceylinco Consolidated

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Ceylinco Consolidated
Limited
Industry Finance
Founded 1938
Headquarters Colombo, Sri Lanka
Key people
Deshamanya Dr Lalith Kotelawala, Group Chairman
Products Banking, Insurance, Non- Banking Finance, Investment Banking, Housing & Property Development, Travel & Leisure, Communication & Information Technology, Education and Healthcare
Increase US$ 120 million Increase 12.5 billion Rs (2006–8)[1]
Total assets Decrease US$ 250 million (2006–8)
Owner Lalith Kotelawala
Number of employees
more than 30,000 people
Website www.ceylincoconsolidated.com

Ceylinco Consolidated is one of Sri Lanka's oldest and largest business conglomerates.

History[edit]

The original company, Ceylon Insurance Company, was founded by Hugh Weerasekere and Cyril E. S. Perera (UNP member for Colombo North. It was the first ceylonese company to be registered under the Companies Ordinance of 1938. The company commenced business on 3 April 1939, providing life and general insurance services.

Due to the Perera's political stance against the SLFP's divisive "Sinhala Only Act" the Ceylon Insurance Co. was eventually politically persuaded to relinquish control by the then SLFP government of Mrs. Bandaranayake to Senator Justin Kotalawela then on the board of Ceylon Insurance. Justin Kotelawala gained control of Ceylon Insurance Co. from Alice Farmacia Perera, the widow of Cyril E. S. Perera, and from Violet van Dort, the widow of Hugh Weerasekere. Many people at the time were under the impression Ceylon Insurance Co. was not a profitable company due to what people were led to believe, when, in fact, Ceylon Insurance Co. was and still is a significant player in Sri Lanka's economy. Cyril E. S. Perera also co-founded (with the Berenger family) another significant Sri Lankan company, Ceylon Chocolates Limited, known for its Kandos brand, which was named after Kandy where they first produced chocolate bars, in combination with the Latin word for money "dos". Kandos also went under the same SLFP reformation, with control eventually being transferred into the hands of Upali Wijewardana for no monetary value.

Justin Kotelawala and his son Lalith built the renamed Ceylinco into a major company which includes over 500 subsidiary companies. It has more than 450 offices with over 30,000 employees. In 1987 the company’s name was changed to Ceylinco Ltd. when it was registered as a public company. Ceylinco commenced business on 14 January 1988. A few of the many companies incorporated with Ceylinco are listed below.

The Ceylinco conglomerate is in a crisis as it has lost the trust of the people due to the collapse of the Golden Key Credit Card Company. Financial institutions under the Ceylinco Group was in the danger of collapsing due to the withdrawal of money by depositors. Hence, the managements of the Seylan Bank and the Three Finance Companies under this institution was taken by Government institutions.

2009[edit]

Ceylinco Consolidated is liable to repay nearly USD 200million for disgruntled [3] depositors [4] of failed Golden Key credit card company,[5] F&G (Finance and Guarantee) PLC, Ceylinco Shiram PLC [6] The scandal, which erupted like a tsunami when the Ceylinco Golden Key Credit Card Company failed to honour its payments to depositors, soon spread to other institutions. it is estimated as at 2009 a sum exceeding Rs. 26.5 billion approx (USD200 million) had to be paid to the 9,054 depositors.

2011[edit]

A failed Ceylinco group company, Ceylinco Shiram repaid [7] a sum of With the release of the third tranche of payments by Ceylinco Shriram, nearly 70% of its investors would receive over 50% of their deposits in cash and in August 2011 Ceylico Shiram re paid the rest of the deposits in keeping with the promise made to the depositors that 60% of the deposit money would be settled within 42 months in 2009.[8]

Subsidiaries[edit]

Ceylinco Consolidated has more than 500 subsidiaries which have spread among a vast area of business operation sectors in Sri Lanka and abroad.

IC & CS[edit]

IC&CS Private Limited is Sri Lanka's largest utility-based conglomerate active in Legal, Finance, Information Technology, Project Management and Company Secretarial. IC&CS is a member of Ceylinco Consolidated, which offers a comprehensive and integrated range of consultancy work.

IC&CS Software Solutions[edit]

Goldenkey Software Solutions Co. (Pvt) Ltd, is a Member of Ceylinco Consolidated, one of the top five largest conglomerates in Sri Lanka. The company's product portfolio consists of various business applications, provision of ERP Solutions, designing IT strategies and design & development of web based customized solutions. vcv

Ceylinco Life[edit]

Earlier known as Ceylon Insurance Company Ltd. It was the first company registered under the Companies Ordinance of 1938 and commenced business on 3 April 1939. They changed name to Ceylinco Ltd and was appointed as one of the Principal Agents to the National Insurance Company. Ceylinco Insurance Company Ltd was registered as a Public Company in 1987 and commenced business on 14 January 1988. Soon the Company started its insurance operations in both Life & General business.

Ceylinco Homes[edit]

Ceylinco Homes International was set up in 1994, as a property development company for the construction of luxury houses and apartments in residential areas in and around Colombo. They also built Lotus Grove which is reportedly one of the first enclosed housing schemes of its kind in Sri Lanka.

Ceylinco Leasing[edit]

Ceylinco Leasing provides finance loan facilities of movable properties.

Ceylinco Selna[edit]

Ceylinco Selna Ltd was incorporated in May 2003. The company engages in Real Estate and Property Development. Ceylinco Selna is also engaged in property exchange, management, financing and broking activities.

Ceylinco Grameen Credit Co. Ltd[edit]

The Prime objective of Ceylinco Grameen is upliftment of the poorest of the poor in Sri Lanka. The company provides micro-loans. They train and guide the members to develop their own small-scale-businesses. The company grant them Rs. 5000 as the first step to any member to start or to develop his or her own business. At the end of the year 2007, the total number of membership was over 325000.[citation needed]

Other subsidiaries[edit]

Other subsidiaries include:

  • A E C Edu Group (Pvt) Ltd.
  • American National College.
  • Asian Finance Limited.
  • Astra Diamonds Limited.
  • Blue Diamonds Brilliance (Pvt) Ltd.
  • Blue Diamonds Jewellery Worldwide Ltd.
  • Blue Diamonds Ltd.
  • C.A.S. Recoveries & Custodial Services (Pvt) Ltd.
  • IC&CS (Pvt) Ltd.
  • Goldenkey Software Solutions (Pvt) Ltd.
  • The Golden Key Credit Card Company Limited (GKCCCL)- currently under investigation by the CID
  • Ceylinco Express Remittance Pte. Ltd . Ceylinco FastCash - Money Transfer Provider
  • The finance and Guarantee Co .LTD- currently under investigation by the CID
  • F&G property Developers(PVT)LTD
  • Asian Foliage Ltd.

References[edit]

External links[edit]