Distilleries Company of Sri Lanka

Distilleries Company of Sri Lanka PLC (DCSL)is a diversifiedSri Lankanconglomeratelistedon theColombo Stock Exchangewith amarket capitalisationof US$600 Million.It was one of the first Sri Lankan companies included inForbes's list of non-US Best Managed companies valued under US$1 billion.The company has also been featured in the business magazineBusiness Todayas one of its Top 10 listed companies in Sri Lanka.
It was established in 1913 as theliquorproducing division of the Excise Department ofCeylon. In 1974, the State Distilleries Corporation was established to take over the liquor distilling and producing activities of the Excise Department of Ceylon. On 17 November 1989, State Distilleries Corporation was converted into a company with shares. Thus, Distilleries Company of Sri Lanka Limited was born, under the Conversion of Public Corporations Act No: 23 of 1983. On 20 February 1992, 60% of the company was sold on theColombo Stock Exchangeto the highest bidder, a consortium of investors formed by Milford Exports Ceylon Limited,Lanka Milk Foods (CWE) Limited(both companies controlled by Sri Lankan businessmanHarry Jayawardena) together with Smith New Court Investors fromSingapore.
Distilleries Company of Sri Lanka PLC has been called "a landmark success in privatization".A state-owned company producingliquor, it was privatized by the state in 1992. After less than two decades of privatization, DCSL has become aconglomeratewith diversified interests in many areas of the country's economy.
In 1995, the company entered into a joint venture withPernod Ricardof France, one of the top 5 liquor producers in the world, to incorporate Periceyl Limited to produce whiskeys, brandies, and other international liquor in Sri Lanka for the Sri Lankan market. The company represents world-renowned brands such asChivas RegalandJameson Irish Whiskeyin Sri Lanka. In 1995, the company subsequently acquired the century-old Beruwala Distillery Limited.
In 1996, the company signalled its intention of diversifying into nonliquorsectors and acquired tea and rubber plantations by purchasing significant stakes in Madulsima Plantations PLC and Balangoda Plantations PLC under the government's privatization program. In 1999 the company acquired a significant stake in highly diversifiedAitken SpencePLC, which has interests in power generation, shipping and hotels inSri Lanka,India,Omanand theMaldives. In 2003 the company acquired a 90% stake inSri Lanka Insurance Corporation Limitedwhen the Sri Lankan government sold the state-owned insurer.Sri Lanka Insurance Corporation is a composite insurer with life and non-life insurance portfolios and over US$500 million in assets and assets under management. In June 2009, theSupreme Court of Sri Lankadetermined that the privatization of Sri Lanka Insurance was flawed, annulled the privatization and ordered that its current owners return its shares in the company back to the treasury. However, its owners have been allowed to keep profits made by the insurer after privatization.
In 2005, the company acquired a 99% stake inLanka Bell Limited, a fixed-line telecom operator in Sri Lanka.
DCSL used to be the holding company ofLanka Bell Limited, Periceyl Private Limited,Pelwatte Sugar Industries PLC, Balangoda Plantations PLC, Madulsima Plantations PLC, Texpro Industries Limited and then associate companyAitken SpencePLC.
In 2016 through a share swapMelstacorpPLC became the holding company of the group making DCSL a subsidiary of the former. All Companies which DCSL owned prior to the swap were transferred toMelstacorpLimited making DCSL a stand-alone liquor company.The currentchairman of the Distilleries Company of Sri Lanka PLC isHarry Jayawardena.