Laugfs Gas to diversify into real estate and tourism

Laugfs Gas of Sri Lanka is looking at diversifying its business and moving into the areas of real estate and tourism. Plans are in the works for a 100-room five-star hotel on the coast of Sri Lanka and an office apartment complex in Colombo. Laugfs also indicated it will set up an institution of higher learning later this year. In addition, the company is looking at listing its subsidiaries on the Colombo Stock Exchange to raise money for further expansion. W. K. H. Wegapitiya, chairman of Laugfs, indicated in a recent interview that, “Raising funds is not an issue. We will go for rights issues and we will list some of our companies in the stock exchange. If possible we will list almost all our companies.” Laugfs Gas currently has 18 subsidiaries, while its core business is in LP gas, lubricants, consumer and petroleum retailing and rubber products. Last August, Laugfs listed four of its firms in initial public offerings and raised $US22.7 million. (May 27, 2011)