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UK bus company drives into Lanka

by Ravi Ladduwahetty

The single largest transaction in the history of the Colombo Stock Exchange (CSE) took place yesterday with the British consortium of Ibis Transport consultants with Transbus International bought 39 per cent equity stakes in six of Sri Lanka's 13 Peoplised Transport Companies for a consolidated value of Rs. 1.45 billion.

Thirty nine per cent equity stakes of the Colombo Metropolitan Bus Company Ltd, Mahanuwara Bus Company Ltd, Kalutara Bus Company Ltd, Gampaha Bus Company Ltd, Sabaragamuwa Bus Company Ltd and Rajarata Bus Company Ltd were sold. This is in accordance with the Government policy of divesting the bus companies in parcels of six at a time.

The British Consortium was the lone bidder in the purchase of these six bus companies. It was the only bidder to satisfy the criteria set by the Public Enterprises Reforms Commission (PERC) and pay the bid bond of Rs. 100 million.

Ibis Transport Project Director Ian Bulley said they will be infusing new capital in the form of vehicles and training.

The employees will be assured of continuity of employment and there will not be any retrenchments, the Government has assured.

The Government has also given a firm assurance that there will not be any tariff revisions till June 2003.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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