BrazilSri Lanka appoints consultants for sale of state-owned company
Sri Lanka’s government has appointed Alvarez & Marsal and Capital Alliance to manage the divestment of its stake in state-owned Sri Lanka Insurance Corporation (SLIC).
The appointment is part of the government’s broader plan to restructure several state-owned enterprises in the wake of the nation’s debt default last year, which plunged Sri Lanka into a severe economic crisis.
The sale of Sri Lanka Insurance Corporation is one of seven state-owned enterprises currently being targeted for divestiture by the government.
With the funds that are expected to come in, the government plans to lower its debt burden, beef up its fiscal position, and enhance competitiveness, productivity and efficiency across the economy.
The advisors brought in to oversee the sale process are well-known players in the field. Alvarez & Marsal is a management consulting firm with a strong track record in restructuring and financial transactions, while Colombo-headquartered Capital Alliance is one of Sri Lanka’s leading investment banks.
Reza Baqir, Managing Director at Alvarez & Marsal and leader of the firm’s engagement team, said: “We are delighted to support the Government of Sri Lanka’s economic reform program and its efforts to divest government ownership in identified state-owned enterprises.”
Tariq Hameed, Managing Director at Alvarez & Marsal, added: “The appointment on this mandate is testament to the holistic approach of our sovereign advisory services offer. Alvarez & Marsal’s heritage in corporate restructuring and financial services and Capital Alliance’s local capital markets expertise makes us well-positioned to jointly lead this economically important mandate.”
The Sri Lankan government aims to initiate the first sell-downs in the fourth quarter of 2023, including other major divestitures such as Hotel Developers, Litro Gas, and Canwill Holdings. Additionally, the International Finance Corporation is being sought to advise on the sale of Sri Lankan Airlines, Sri Lanka Telecom, and Lanka Hospitals.
