Colombo Market Watch: From Rs 500 to a billionaire The Dhammika Perera story

Last week I read a very interesting article about well-known person, it’s Mr Dhammika Perera’s life story, I thought it’s good story to publish through Colombo Market watch Blog, this article done by Mr.Paneetha Amarasekara, Mr.Amarasekara gave his first paragraph to explain about wealth of Dhammika Perera, and second one for his business Strategies, I extract that paragraph for this post.
“My investments in the stockmarket (his investments in NDB, Royal Ceramics, LB Finance and Connaissance were all made last year and this year) were possible in part, if not wholly, due to the support I received from Seylan Bank and Ceylinco consolidated chairman Lalith Kotelawala and Sampath Bank chairman Edgar Gunatunga and its managing director Anil Amarasuriya,’ says Perera.
‘When I wanted Rs 60 million from Seylan Bank to invest in NDB and Royal Ceramic shares last year, Kotelawala offered me Rs 240 million-a four fold increase,’ he said. And this year, when I wanted Rs 50 million from Sampath Bank, they offered me Rs 150 million instead, added Perera.
He invested in NDB by buying those shares at prices ranging from between Rs 20-60 a share. At present those shares command a price of Rs 90 a share. He further said that virtually all of his investments were providing him with a return higher than the interest charged by the banks on his loans. ‘I have no foreign partners. All of these monies required for my investments have been generated locally,’ he says. Perera attributes his success to hard work.”

This Is IT
His life story is something like reading a story from one of those fairy tale books. ‘When I was 19, this was in 1987, my mother gave me Rs 500 to buy me a pair of shoes. At that time I had qualified to follow an NDT course on electrical and electronics at Moratuwa University.
But by then the JVP troubles had broken out and Campus was more closed than open. I’m from Paiyagala, Kalutara, having had my education at Taxila Vidyalaya, Horana. At that time I was living with my uncle who was running a cafe at Pettah.
There was a pavement hawker operating in front of my uncle’s restaurant. Instead of buying a pair of shoes, I lent him that Rs 500 on the understanding that he conducts his business on a profit sharing basis with me.
The life of a pavement hawker is a hard one. He starts his work early in the morning and continues till evening. He does not have time to relieve hinself nor does he have time to have his meals while hawking his goods. The only time he is free is when dusk sets in. Then he winds up his business for the day, said Perera.
So, this tie-up with this hawker brought me a return of Rs 200 on a daily basis, while my capital inveetment of Rs 500 remained in tact. This operation went on for three months, during which period I made a clear profit of Rs 74,000.
Then, I turned my hand to slot machines or jackpot machines as they are commonly known. I borrowed five such machines from Lal Wijeratne of Grayline Group.I had them installed at my uncle’s cafe in the Pettah-it was called Isurugiri Hotel.
My arrangement with Wijeratne was that I would keep 30% of the takings, while the balance 70% was for him. This was a successful business partnership. ‘But I was restless.’ I wanted to learn the technology of these slot machines.

Therefore I took wing to Taiwan to follow a six month technical course. This was in 1988 and I was 20 yearl at that time. By then I had dropped out from Moratuwa University.
But I returned from Taiwan in three months.Because it took me only that much of time to assmilate that technology. Then I started making my own slot machines and had them operable in his uncle’s cafe. As a result, all of the takings made from these machines were for me. There was no question of giving 70% of the share to the landlord, because I was now the landlord.
By then I had made enough money, enough to buy over my uncle’s cafe. And at 23, that was in 1991, I had millions and millions in my kitty, with 285 machines in operation.
But disaster struck in 1991. Ranasinghe Premadasa who was the president at that time imposed a ban on jackpot machines.Then What did you do? ‘I opened a car sales centre at my home in Paiyagala,’ said Perera. I called it Anuradha Traders. Currently we have four showrooms-at Kirullapane, Negombo, Kandy and Peliyagoda. I also ventured out into property development.
In 1993 I started my own casino business at Isurugiri. I called it Capricorn.
Then in 1995 I opened up the MGM casino in Colombo-Iwas 27 at that time and followed it up by opening Ballys in 1996 and Bellagio in 1998.

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His Achievements

Deputy Chairman

Royal Ceramics Lanka PLC

Deputy Chairman

Amaya Leisure PLC

Chairman

The Fortress Resorts PLC

Former Non-Executive Director

Citrus Leisure PLC

Former Director

Lanka Ceramic PLC

Former Deputy Chairman

Pan Asia Banking Corporation PLC

Chairman and Member of Remuneration Committee

Vallibel Power Erathna plc

2002-Present

Executive Deputy Chairman and Chairman of Nominations Committee

LB Finance PLC

2007-Present

Chairman, Member of Risk Management Committee and Member of Strategic Planning Committee

Sampath Bank PLC

2007-N/A

Former Director and Member of Investment Committee

Asian Alliance Insurance Plc

2008-Present

Deputy Chairman, Member of Audit Committee, Member of Nomination Committee and Member of Remuneration Committee

Hayleys Ltd.

2009-Present

Director

Haycarb PLC

2009-Present

Non-Executive Director and Member of Audit Committee

Hayleys MGT Knitting Mills Plc

2010-Present

Director

Hotel Services Ceylon PLC

Other Affiliations*