Hunas Holdings becomes Sri Lanka’s newest listed diversified conglomerate

The TAD Group leadership team, from left: Group Director Sujivie Irugalbandara, Group Managing Director Atheeq Ansar, Group Directors Pravini Wickramanayake and Frank Irugalbandara, Group Chairman Dhanuka Samarasinghe, and Group Directors Toshiaki Tanaka and Misako Senda

Hunas Holdings PLC, previously known as Hunas Falls Hotels PLC, has officially become Sri Lanka’s newest listed diversified conglomerate.

This follows Serenity Lake Leisure Ltd., a fully owned subsidiary of the TAD Group of Companies, infusing the then Hunas Falls Hotels with Rs. 4.25 billion in capital in January 2022, by transferring its ownership stakes in 11 companies to the latter. 

This marked the first time in the country’s history in which such a transaction has been carried out without any dilution of the company’s minority interest, setting a new benchmark in good corporate governance and corporate responsibility in the Sri Lankan stock market. The move greatly benefited the company’s minority shareholders, who currently account for 6.5% of the company’s ownership, who saw vast appreciation in the value of their shareholdings.

Hunas Holdings now holds 11 assets in renewable energy, real estate, tea (plantations, factories and in tea brokering) and hospitality/leisure sectors. In addition to strengthening the company through diversification, which adds multiple new revenue streams, the capital infusion also augments and expands Hunas Holdings’ asset base. Furthermore, the increase in the consolidated asset base will facilitate the company’s future expansions as well, by making it easier to raise funds through borrowings for potential future developments, investments and acquisitions.  

“Hunas Holdings PLC envisions becoming a leader in sustainable and ethical business in Sri Lanka,” Hunas Holdings Director Pravini Wickramanayake said. “Through the manner in which the capital infusion was carried out, by protecting the interests of the minority shareholders, we have demonstrated our strong commitment to ‘walk the talk’ in terms of upholding the highest standards of corporate governance and ethical business.

“Despite challenges, the Sri Lankan economy has vast untapped potential and Hunas Holdings PLC will help realise these opportunities. For this purpose, we will leverage our strong partnerships with reputed foreign investors, to bring in foreign direct investments (FDIs) into the country, which can add substantial impetus to Sri Lanka’s growth prospects.”

The companies which form the diversified portfolio of Hunas Holdings are Hunas Properties Ltd. (100%), Boulder Gardens Ltd. (90%), Rainforest Hotels Ltd. (90%), Suriyakanda Plantations Ltd. (100%), Rainforest Tea Factory Ltd. (90%), Amunumulla Suhada Electricity Generation Company Ltd. (100%), Sustainable Energy Holdings Ltd. (100%), Mercantile Produce Brokers Ltd. (20%), Weswin Power Galaha Ltd. (20%), Eratne Power Company Ltd. (30%) and Kuruganga Hydro Ltd. (19%).