ECONOMYNEXT – Businessman Dhammika Perera is buying into Sri Lanka’s diversified Laugfs group taking a 39 percent stake of its holding company, as a founder director and Deputy Chairman Thilak de Silva exited, officials said.
Laufgs has interests in liquefied petroleum gas, shipping renewable power, fuel distribution, retail, manufacturing among others.
“We need huge muscle power to rescue the company,” de Silva told EconomyNext. “Someone had to exit to pave the way for an investor. It was a difficult decision. But I am happy the brand will survive.”
Laugfs Gas and Laugfs power are listed companies.
Laugfs Gas, which has the flagship LPG business posted gross profits of 888 million for the June quarter, but had finance costs of 733 million rupees, triggering loss for the quarter. It had 12 billion rupees of long-term loans and 19 billion in short term borrowings.
De Silva declined to reveal a transaction price saying it was under discussions, but market estimates range from around 5 to 7 billion rupees.
It runs South Asia’s largest LPG transshipment terminal in Hambantota and also operates ships.
With Perera the group can work to make Laugfs a regional energy player, Laugfs Power Chief Executive Mithila Wegapitiya said.
Laufgs is a diversified group made up of 23 highly unrelated businesses raging from LPG and power to supermarkets, rubber manufacturing, emissions testing and pharmaceuticals, he said.
“In Dhammika Perera we saw a person who would be very good to unlock the potential of Laugfs,” Wegapitiya said.
“We have a vision prepared for the company. It is a beautiful partnership.
“Laugfs holdings is a 300 million dollar top line company, extremely young, innovative with strong Sri Lankan DNA.”
Laugfs was made up of greenfield projects built from the ground up over 30 years, and not acquisitions, which was a short period compared to other business groups in the island, he said.
Laugfs started in 1994 with LPG conversion of vehicles, with de Silva and Chairman W K H Wegapitiya. It then entered the LPG business, and expanded into new areas including into Bangladesh.
Laugfs Gas faced difficulties from 2015 amid price controls and was also hit by Sri Lanka’s last currency crisis where it was unable to import gas due to forex shortages. (Colombo/Sept09/2025)