Sri Lanka ERI takes control of fabric manufacturer

June 04, 2010 (LBO) – Sri Lanka’s Environmental Resources Investment, an investment holding company, has bought control of fabric manufacturer South Asia Textile Industries Lanka for 710 million rupees, according to stock exchange filings. The statement said SATL has had “positive results” from its inception and annual sales of 3.6 billion rupees in 2007 and four billion rupees in 2008.

ERI was one of the best performing stocks on the Colombo bourse earlier this year and the subject of speculative buying which also prompted inquiries by the markets regulator.

Ceylon Leather Products is a Sri Lankan leather products manufacturer which owns the DI brand. ERI subsidiary Ceylon Leather Products said in a statement it plans to acquire 51 percent of South Asia Textile Industries Lanka (SATL) through a private placement for 550 million rupees.

Ceylon Leather Products’ parent holding company Environmental Resources Investment said in a separate statement it plans to buy eight percent of SATL through a private placement for 160 million rupees.

ERI is controlled by Lionhart Investments, a privately held firm.

The total investment of 710 million rupees results in a controlling stake of 59 percent in SATL which makes knitted f