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Equity Investments Lanka Ltd. (EQUILL)

EQUILL is a venture capital company that was set up in August 1990 under the sponsorship of the Commercial Bank. EQUILL provides financing to local entrepreneurs and small and medium-scale businesses across a range of Sri Lankan industries. The Bank presently holds a 22.92% stake in the Company.

In 2011, EQUILL’s principal activity continued to be project financing in the form of equity, quasi-equity and other corporate debt instruments - for both new and established ventures with high-growth potential. The company also provides performance monitoring, accounting and other management services to the companies in which it has invested.

The exceptional profit level realised in 2010 - which reflected the highly favourable market conditions that year - could not be sustained in 2011.

Future Outlook

EQUILL focuses increasingly on strengthening its investments in mini hydropower generation. This is a comparatively low-risk business, as the purchase price for power is guaranteed by an agreement signed with the Ceylon Electricity Board. The company also intends to begin investing in the hotel industry in 2012, as part of a broader strategy of selective investment aimed at maximising returns.

Commercial Insurance Brokers (Pvt) Ltd. (CIBL)

Initially known as Commercial Insurance Services (Pvt) Ltd, the Company was incorporated in 1987. The Bank presently has an indirect stake in the Company of 18.91% through its subsidiary, Commercial Development Company PLC.

As an insurance broker, the Company offers insurance products and services, both on life and general, at competitive premiums to individuals and businesses. The Company has an experienced team of professionals exceeding 100 who are deployed in an island-wide network of branches equipped with necessary infrastructure facilities.

The Company introduced and commissioned a new Accounting Package, viz “Pronto ERP” with the assistance of EWIS technology to have an online system of information pertaining to Accounting System, Underwriting of insurance of Fire, Motor, Life, Marine, Miscellaneous, etc, and access the branch network.

Overall the Company ranks as one of the top performers among the competitors. Profit of the Company also increased substantially during the year.

Future Outlook

The plans of the Company are geared to accomplish its Vision and Mission appropriately defined to achieve leadership in its undertakings whilst maintaining integrity and ethics.