Interview with Mr Lalith Kotelawala - Ceylinco/Golden Key

Mr Lalith Kotelawala in conversation with Anura Bandara Rajaguru
Pix by Manjula Dayawansa

From Maubima (Unabridged translation)

By Anura Bandara Rajaguru of Maubima

(Translated by Lutronman)

Q. Where were you born?

I was born in Colombo 7 at 14. Ward Place, on 29^th of October 1938.

Q. Who were your parents?

My mother was Millicent Kotelawala. My grand father was Dr A N de Silva. He was a famous surgeon & was the teacher of Dr P R Anthoniz.  My father was the Senator Justin Kotelawala. Sir John Kotelawala was my father’s elder  brother.

Q. Any other siblings of your family?

My sister is Punya Kanthi Wijenayake.

Q. Isn’t she the famous writer?

Yes, my other sister is Ayoma Wickremasinghe. I am the youngest in the family & the only male.

Q. Was Inter Alley your estate company?

Yes, we had tea estates, mines & coconut estates. Kahatagaha mines in Dodangaslande was our as well. Our entire family was landed proprietors.  Most of the family followed into politics with UNP.

Q. Your education?

I schooled at Royal College & followed a course in Chartered accountancy in England. Subsequently I came back to Sri Lanka to work as a management trainee at Ceylon Insurance Co Ltd.

Q. Wasn’t your father a graduate of The Cambridge University?

Yes. He was a Economics graduate from Cambridge. He started the first Insurance Company in Sri Lanka (Ceylon).

Q. Your family had very close connection with Indian Patriots like Jawahalal  Nehru, Mahathma Gandhi & Sarojini Naidoo?

Exactly right, my father acted as the Secretary for Jawahalal Nehru when he was in Sri Lanka. They were the pioneers of Indian Independence movement. My father, D S Senanayake, Sir john Kotelawala were the pioneers of Sri Lankan (Ceylon) independence. Year after India gained independence from the British we were granted our independence in 1948.

Q. What are your memories of the life at “Manohari” in Ward Place?

We were a very rich family with a palatial house with 18 servants! I will state one thing my parents taught us the good things in life like respect each other, treat your servants respectfully, good behavior in society & also we were a very close knit family.

Q. Did you’ll have to leave Colombo &  live in Nuwaraeliya for sometime?

Yes, when the Japanese bombed Colombo we had to move to Nuwaraeliya Bungalow for about two years. I had my basic education in Nuwaraeliya & the joined Royal College when we came back to Colombo.

Q. At Royal College you were champion athlete & what is this story about “Tom Mix” Gang?

I don’t know how you have found this information! Yes in those day’s our hobby was watching Movies like cow boys movies etc. I was a avid fan of “Tom Mix” cowboy movies. Then we started this “Tom Mix” gang & used to run around pretending we were cowboys with toy pistols & other cow boy paraphernalia!  Once we tied up one of our colleagues to a tree & were found out by the warden. In fact I got three or four slaps on face from the warden & that was the end of “Tom Mix” antics.

Q. Weren’t you a Polo Player by the age of 13?

In the Race course at Reid avenue there was a Polo Ground. As we were very rich then my father bought me a horse & I got into Polo. When I was doing my O-Levels also I was in Polo & crashed my exam. My father was pretty annoyed with me for having failed my exam & that was the end of the Horse which put a stop to my Polo playing days. My father took over my studies & provided private coaching. The very next time after repeating the o-levels I passed. I played Rugby at Royal & did Boxing as well. I was made a coloursman for athletics at Royal.

Q. You proceeded to England for Higher studies?

Yes. The surprise was my father never encouraged me to go to Cambridge which would have been the obvious choice as he was graduate from same. My fathers advice was that we were living in changing world with Capitalism being taken over by Socialism. The capitalistic world of Polo players is being taken over by socialism. Therefore he wanted me to follow a study course in Chartered Accountancy which would hold me in good stead in the new world order taking shape. My father found me the digs to stay & returned home. I came to England in the Winter & living alone in England was something very difficult & arduous. I had to dress in a three piece suit looking smart going  to work & study at the firm of accountants on top of everything else!

Q. I understand that you got into some difficulty on the first day of work?

I went to work shivering because it was very cold. My boss was a retired Naval Officer called Mr Fidoo. After greeting me “Good morning” he wanted me to fetch him a pack of cigarettes from the shops & instructed me to make tea for the office staff. I had never made a cup of Tea in my life! We had servants at our beck & call back home. I was in a very inconvenient situation but luckily another colleague came to my rescue by guiding me in tea making rituals. Then I was asked to be the telephone operator. Subsequently I learnt my trade & had to visit various firms for auditing work. I lived in England for four years.

Q. On your leaving of Royal College to proceed to UK you had a farewell party for your friends & did something special happen at this party?

I left to UK in 1955. My friends hosted this party & some girls also joined the event. My sisters schooled at Bishops College. Since that there were a few girls who joined the occasion. I met my wife Sicilia at this event which was love at first sight. I was 17 & she was 15.

Q. You got married after a 8 year love affair, tell me more?

We got married on 7^th of May 1963. The witnesses at our wedding were Late Mrs Sirimavo Bandaranayake & my uncle Late Sir John Kotelawala. Of course true to form my uncle cracked a joke with Mrs Bandaranayake about placing the signature at the correct place saying if they got it wrong they would be the couple who got married!!!

Q. Your marriage took place at “Akasa Kade” of Ceylinco House which was owned by your family?

My father visited USA in 1950 if I remember right. He was quite impressed with the Skyscrapers he saw in the states. When he returned back to the Island he decided that he will construct the tallest building. Roof top was designed with a helipad & the building was built with minimal automation to suit the country. All floors were constructed using manual labour.

First cutting of sod was done by my father on the 21^st of October 1955 at 10.30 am. The building became the tallest building in Ceylon & was the first building to have a escalator! Ceylinco House was declared open by Late Mrs Sirimavo Dias Bandaranayake.

Q. Your father had his dream come true by constructing the tallest building in the island. After reaching such a milestone was it all plain sailing thereafter?

After achieving all that something very strange happened.  During Sirimavo’s time  all our lands were taken over under a socialist agenda. Our insurance business was takenover. My father was heartbroken. We had a island off Piliyandala, Delthara called “Saint Michelle”. At the Island my father had a altercation with PC Eardley Perera. This involved a brother of Mr Eardley Perera.  Thereafter my father left the island to UK. He passed away in London in 1973.

Q. Since then you took over the company affairs?

I did not inherit many companies. We had The Finance Company, Nationalised Insurance company life policies & The Ceylinco house. That was all. Thereafter I built Hotel Cey-Sands, Blue Diamond – Diamond cutting & polishing business, Ceylinco Travels, Ceylinco International Trading, The Finance & Guarantee  Company etc.

Q. Did your father ever tell you how he got the land to build Ceylinco House.

He did tell me. It cost 130 million then to construct Ceylinco house. My father wanted to bring all companies under one roof and build a large company to have more business clout. This he announced at a family gathering after inviting all of us for dinner. I did not agree to it because family businesses get into difficulty one time or the other. I said to hand over the Printing business to me. Then he gave me the printing business.

Q. What is the name of the Press & where was it situated?

It was called the Middleway Press. There were 11 employees. It was based in Homagama, Gabadawatte belonging to my father. My father was into planting sector whereas I was more into industrial sector. I used to admire Mr Upali Wijewardana’s Kandos Chocolate business & Maliban Biscuit Company. When I suggested a industrial business my father was not in much favour.

The Central Bank building opposite our Ceylinco house was being constructed by Zublin of Germany. The building had blue coloured tiles being fixed to its exterior. Zublin had a manufacturing facility for these tiles in Ratmalana. I wanted to buy the tile machinery after the construction of Central Bank. They wanted fifty thousand rupees for the machinery. I asked my father if he could give me the money & he said I will give you the money. My idea was to go into manufacturing of tiles in Sri Lanka. My grandma gave one and a half lakhs of rupees to build a workshop in Homagama, Gabadawatte land belonging to my father. Once the building was finished I asked for the promised money from my father as he was observing the completion of the building during his weekly visits to Homagama. He turned around said he did not promise any money for me! I told him I have spent over one and a half lakh of rupees expecting his fifty thousand to get on with business. You know what he said “serves you right for building on other peoples lands”, those are the lessons I learnt from my father. Despite his advice I still think he made a mistake in not diversifying in that period of time when the estates were lost. We should have gone into local manufacturing.

Q. Despite all that you developed Ceylinco into 450 company conglomerate?

I developed it up to 36 companies. I had only one Vice Chairman, Mr Daya Senanayake. He is a schoolmate of mine. In fact he was my Groomsman at my wedding. After the 36 companies I wanted to retire as I was 56 years old then. I had become a devout Catholic. As I was making that decision it was the fateful day that 31^st January 1996 the LTTE struck the central bank with a truck bomb. Myself & The Ceylinco House was also victims of that atrocity. My eyes were badly lacerated with glass shrapnel from the explosion.

I underwent treatment in UK. I could see only from the left eye with difficulty. It was a very painful injury. I could see a big made person in a cloak asking me to go to sleep. I believe it was Jesus.   

I underwent treatment in UK for about one year. I think it was a miracle that I was completely cured. I may be the only person who lost ones eyesight & regained it in that bomb blast.  I think it was gods will.

During that time I had a lot of free time & I read a book by Che Guevara about Guerrilla tactics. In that book I read about achieving victory through pyramidal methodology of traditional army. I applied similar methodology upon my return to Sri Lanka in my business. In ten years I expanded into 450 companies with 45000 employees. 11 of them were market leaders. It was like a wave. Overseas companies were established. 

Q. In which countries?

Singapore, Malaysia, Australia, Dubai, UK, Japan, India etc. I wanted Ceylinco to be made into multinational. I started fastcash foreign exchange system. Transmittal of money from overseas was efficient through Singapore because it was a money capital in the far east.

Q. How did the names Ceylinco & Seylan come about?

Ceylinco was from Ceylon Insurance. Seylan is a bit corny! It came about from My name & my wives name Cicilia & Lalith.

Q. Your first company Ceylon Insurance was nationalized?

After Nationalisation my  policies were taken by Central Bank. This created a complication about existing policies that were reaching maturity. New policies were not affected. We did not have the monies to pay the policy holders & people were making a furore about this like the Golden Key debacle. In order to pay the monies I gave Ceylinco House to the Insurance Corporation.

Q. You mean gave it on Mortgage?

No, I transferred the ownership. Minister T B Illangaratne was the person who was involved. I went to Nuwaraeliya. They (ICSL) took over the responsibility to pay policy holders.

When I was in N’Eliya I had a telephone call from Mrs B. she said “Lalith have you given Insurance to Mr T  B Illangaratne?” I was in a very awkward situation, but I told Mrs B everything. She wanted me to come & see her in person.

When I called on her she had called a conference with all the stake holders of the matter. There were about 20 people at the conference. She wanted me to sit beside her & then questioned from people present “Why have you taken Mr Kotealawala’s Ceylinco House?”

“We did not acquire it but since he could not pay the policies he himself turned over the ownership” Her spontaneous reply was “Give it back at once”

She also said this was my inheritance – also that she was person who declared the premises open. Those present said how can we pay the policies?

She said that is your problem but however she instructed the officials to grant me a loan so that I can take the responsibility to pay the policy holders. I paid back the loan & everybody was happy.

Q. How much was the loan?

13 Million rupees.

Q. Now you gave me a classic example of how effective a compassionate government intervention can help to solve financial problems. Let’s come to the present situation what happened at golden Key?

This whole episode started with “Sakvithi”. When that institution had problems everybody who had deposits with us started to demand their money back. I must admit my officials also had serious errors of judgment. We had people queuing outside our office. 

I spoke Mr Kavan Perera who was the CEO of Golden Key to solve the matter who said the whole problem is Sakvithi. He wanted 25 Million which I gave. Then 100 Million, Then 300 Million – like that I gave close upon 500 million to tie over the situation. The entire Ceylinco Group money was used in this operation.  During those days the top brass of the country was available for me to contact any time. I went and met a very powerful person & asked him to take Ceylinco Golden Key ENT hospital as a bond to lend me 500 million rupees.

“Not a problem” he said to me over phone, asked me to hold on & spoke to another person saying get me Gamini Wickremasinghe. “Lalith wants 500 million rupees loan give it to him”

I was waiting for call from Mr Gamini Wickremasinghe but not a dickie bird! Finally out of exasperation I called Gamini who conveyed to me that he got no call of such a nature from the said person! Now things were really getting aggravated.

Q. There was a talk during those days a certain wealthy person & some cricketers had their money deposited at Golden Key?

Yes that is true. People put their money in Golden Key because I owned a Bank, I paid legitimate taxes. I owned The Finance Company Ltd with certified permits etc. I paid all dues to Inland revenue without default. It was all clean money not black money I earned. Ceylinco Development Bank paid taxes, everything was above board! Golden Key deposits were secured deposits. People got 20 to 25% interest on deposits!!! There were depositors who had bought properties in Norway & paid repayments with the returns of Golden Key!!! There were people who had dual citizenships among them. Mr Kavan Perera knew all this info but never kept me on the loop. He had absolute control; over everything.

After the tragic death of Mr Jeyaraj Fernandopulle we have paid 300 Million to the wife. Mr Kavan Perera never uttered a word about this payment. When you pay that kind of money out of a financial institution without necessary safe guards you can have very serious complications. Cricketer Aravinda de Silva got piad 150 million. A VVVIP’s wives brother a pilot was paid 30 Million, in fact this cheque was paid by me! This payment was a order & a command by the VVVIP.

Things were getting really bad under the circumstances, so I called VVVIP to tell the person to I am being made a accused person through undue pressure. I was planning to retire at the age of 70 & my wife was waiting in Singapore for me to arrive on my birthday. I had a Air Ticket in my hand to travel. I did not travel due to the quagmire of the problem. I am a person like that I will not leave my country under such circumstances. Mr Kavan Perera was lying all the time about the financial health of Golden Key. He showed me falsified documents including the auditor’s reports. In fact he himself ended up in jail! He showed the liabilities at 5 Billion but the true figure was 13.5 billion! This was a pre planned assault on me.

Q. Are you telling me that due to the fraudulent behavior of the board of directors you had to carry the can as the Chairman of the company?

Still I had a plan to resurrect the situation. That was to pay back the 13.5 Billion in a period of three  and a half years. On the last day I went Mt. Lavinia courts with PC Romesh de Silva with a cheque for 200 million with my re-payment plan. Despite my proposal the depositors made vehement objections to my plan. Even without the objections of CID I was sent to remand prison under the pretext of protective custody!  ( The amount required by the depositors is not clear in the Sinhala article)

Q. Did you at any point ask for any protection?

Are you mad? No never. If required they could have put me under house arrest. This was a very carefully thought out plan.

Q. Are you making this statement with certainty?

Yes of course. Then powers that may be took over my companies one by one.

Q. How can they do it? There should be some legal methodology to this kind of takeover?

It was not legal. All my shares at The Finance were taken over. They have taken over 2.5 Billion from company (??) They gave it to a affiliate of the theirs. I did not get a cent. When justice Shirani Tilakawardana was hearing the case I said this is like the person caught in Tsunami having the necklace snatched! I said it in open court. Signatures cannot be obtained when in Jail. Ceylinco House was taken over.

Q. That was your inheritance from your father – Which Mrs B intervened & released for you.

Yes. They took that as well.

Q. Under what methodology did they take it?

You tell me. Now we have a just government. Give me one month & please release me from my bondage.

Q. What do you mean by bondage ?

According to my bail conditions I have to report to CID every week. I have done this deed for the last 6 years. My Passport has been impounded. I have 11 people standing bail guarantees on my behalf. I cannot travel out of western province. I cannot resign from any one of the 450 companies which I hold board positions. I am not allowed to go to board meetings. I cannot speak or give any orders in these companies.

Q. You claim your companies were taken over in a irregular manner. Can you clarify how & what happened?

To tell the truth, I have no idea. I don’t know what is happening at Ceylinco, Seylan or The Finance.

Q. What you are implying is that management of these companies were handed over to cronies of the previous administration?

Yes they were their friends, relations etc. You may know who has taken over the Hyatt project opposite Temple Trees. This is outright robbery. Ajith Nivard Cabraal was the go between in these appointments. I don’t care about the racketeer depositors but very much care for the genuine small time depositors. Mr Cabraal is the person who is responsible for this selloff. The monies realized from the sale of my companies has been invested in large corporate. A person who was in judiciary is involved in this racket through his wife.

Q. Can you tell me something about the time you were in Remand Jail?

 I was in Welikada. In the days gone by when you say Deshamanya Lalith Kotelawala – Chairman of Ceylinco Group people used be in awe. I used to go to the California Grill at Galadari on a Friday night with my friends. I had special seating area reserved for me including a privileged parking slot for my car. The band would not stop until I leave. That was the life I led. I had enough money then. I was highest income tax payer in the country. In fact I had a Privilege card for that as well! I had the ultimate luxury of everything. In one moment I lost all that when I was sent to Welikada. I slept on the cement floor of the cell with the bugs & the mosquitoes. Used the common latrine.

Q. Richest Billionaire of Sri Lanka?

That is very correct. I asked the God what have I done to deserve all this? Inside the jail I saw a side we normally don’t see in society. As rich people we don’t see that side of society.  I saw people living in hunger, in pain etc. There were people who would give me a half a banana to stave off hunger. Not everybody in jail is innocent but you had murderers, criminals etc. I learnt the other side which I did not know. A prostitute is in the profession for a reason like in order to survive or fend for the children. They don’t do it because they like it but for survival. I don’t have the money I used to have but I went out today & distributed 300 lunch packets. That is because I saw the suffering & hunger in jail.

Q. Which ward did you reside while in jail?

I was in the Orthopedic Ward. I had a funny experience while staying in jail.

Q. Can you tell me the experience?

During those halcyon days I had access to Temple Trees 24 hours of the day. Ex president Rajapakse was very close to me. One night I had a call from The Presidential Security Division.

“Mr Kotelawala, the Predident wants you to travel with him to Diyagama National stadium tomorrow morning. Can you come to the Bambalapitiya Police Grounds tomorrow morning to travel by Helicopter.”

 I was in trepidation about the invite to travel by Helicopter as the LTTE threat was very high then.  I spoke to the president about my fear & he assured me don’t worry everything will go well. I went to Diyagama as planned by helicopter. The President had already arrived earlier. There were no other businessmen present other than the officials.  He called for the construction plans to study them. I was also looking at the plans over his shoulder. He was asking how much the pavilion is going to cost & the reply from the army officer was 90 Million. He asked how much the Track is going to cost & the reply was 10 million. The he said 10 million is a lot of money, where is he going to find the money he started questioning himself. I like a fool volunteered to fund the entire 100 million for the Pavillion & Track!

Grinning at everybody he said I am very happy. The he hugged me & said he will name the Stadium after me. The Grounds were going to be called after him. We came back to Temple Trees & had lunch served by his own hands.  I was in jail one night watching the Diyagama complex being declared open built with the money I donated. There was no mention of my name anywhere!!!

Q. the Hyatt hotel is in front of Temple Trees?

That was taken over when I was in jail. It was dream I had like my father to build the tallest building in Sri Lanka. The plans were done by firm of Architects in Singapore for 50 story building.

Q. Was it finished when it was taken over?

When I went to jail it was on the 40^th floor. I don’t know the present state of construction.

Q. The legal ownersip of this building is in your name?

No, no

Q. Then?

In my Company name.

Q. So that means the company has been nationalized ?

I have no idea. To pay back the debts they don’t have to take over my entire estate. I need permission to investigate all this. How can somebody take over all my assets in this manner?

Q. Are you implying that this seizure of assets is illegal?

Oh yes! All my assets & my wives assets has been taken over.

Q How much of your money from the bank accounts?

About one & half Billion Rupees.

Q. Where is this money? Has it been given to the depositors?

To my knowledge it has been invested in a another company. That is why I am asking to be released from this bondage to investigate everything.  

Q. Have got a message for the Golden Key Depositors?

All of you got into a ill advised route to recoup your money. My three year plan was workable but was rejected & I ended up in jail. If this did not happen not only Golden Key but Shriram depositors would have got paid by now. This was planned by interested parties for political gains you the depositors became pawns in this grand scheme of operation. I have no malice against anybody.

Q. Are you implying that the depositors were too quick in their quest to recover the deposits?

No not necessarily. It was not their fault. Powers that may be suddenly got a taste for my assets in the midst of furore. The depositors were led astray according to how I see.

Q. A clear accusation to you was that you were very close to Former CJ Shirani Bandaranayake. Also that you procured a property for her?

It is a blatant lie. It is a sin to say that, because I have never met her in all my life!

Q. Wasn’t there a accusation?

Yes. It was a devious plan by the conspirators who even arranged for milk rice party outside CJ’s residence when the impeachment took place! Any way Justice was served to her by the reinstatement that took place recently.  Truth will always prevail.

Q. You increased the no of companies from 30 to 450, don’t you think this created a problem for you in managing this vast empire?

Exactly right.  

Q. Now do you think you over did the whole operation?

I made one big mistake. I should have employed a independent set of Auditors to keep a close check on the operation. If I did that I would not be in this predicament.

Q. The person who gave you wrong figures, your vice chairman is he also in trouble?

He is a free man living a comfortable life & of course he had the blessings of the powers that may be!!