Sri Lanka LOLC buys into construction firm

Oct 28, 2010 (LBO) – Sri Lanka’s listed LOLC group and Browns Investments, a private firm, have bought into the island’s Sierra group which has interests in construction, cable manufacturing and fertilizer in a 1.6 billion rupee deal. LOLC, a financial firm had earlier also bought a hotel group. The two firms had bought a 20 percent stake in Sierra Construction (Pvt) Ltd, which is a top telecom contractors and a 20 percent holding in Sierra Holdings (Pvt) Ltd which holds 60 percent of the construction unit, LOLC said in a stock exchange filing.

Sierra Holdings also owned 58.1 percent of Sierra Cables, a public company and 51 percent of Agstar Fertilizer, a private firm.

LOLC said it expected the construction sector to grow, fueled by post-war economic growth.