MMBL pursues new business model for post-conflict Sri Lanka

Building niche investments by combining global brands and local blue chips

Wide publicity was given in the media to the foundation laying ceremony of Jetwing Yarl hotel in Jaffna, a joint venture between Mercantile Merchant Bank (MMBL) and Jetwing by Prime Minister D.M. Jayaratne on 3 February.

The project will not only provide a state-of-the-art 76-room luxury hotel for visitors to Jaffna, but also employment for the youth as well as host of economic opportunities to residents of Jaffna. After the three decades long conflict, investors are confident of the potential of Jaffna and people of the peninsula are beginning to experience only the fringe of economic prosperity.

Entering in strategic alliances with reputed and well-established local and foreign companies has been the forte of MMBL group. In the leisure sector, MBBL has two other joint ventures with the Jetwing group, which seek to develop an eco-friendly luxury tent resort in Rangala, in the hill country, a location surrounded by waterfalls and mountain ranges enveloped in mist.

Another exciting venture is a luxury two bedroom houseboat project (initially five units will be built) employing locally designed twin hulled boats. Houseboats used for different purposes were a regular feature in the 19th and early 20th centuries in several parts of the island.

Originating from the banks of Dedduwa Lake in close proximity to the internationally-renowned Bentota Tourist Resort, houseboats would transport tourists at leisurely pace and in air-conditioned comfort up the Bentara River, providing an opportunity for tourists to enjoy flora and fauna endemic to the area and discover rural lifestyle of the people living along the riverbanks. 

In addition, in the leisure field, MMBL has joint ventures with other blue-chip companies such as John Keels, which has invested in properties located in newly-emerging resorts in the east coast, for development as demand emerges.

Another exciting venture of MMBL Group is a domestic air service with John Keells, Brandix and another investor that would whisk tourists from the international airport direct to their destinations in far corners of the island, between 45 minutes to one hour. Aircraft chosen for the task would have amphibian capability that would enable them to land on hard tarmac as well as water, thereby providing resort-hopping possibility to tourists.

Activities of MMBL go much farther than the leisure field through equal share holdings. Through its Mountain Hawk Express (Pvt.) Ltd., an equally held joint venture with Hayleys Advantis Ltd., the company represents Federal Express Co. (USA) in Sri Lanka. Meanwhile, its sister company Mountain Hawk (Pvt.) Ltd., focuses on business activities such as property development, warehousing and facilities management. MMBL Money Transfer (Pvt.) Ltd., a joint venture with Aitken Spence & Co. Ltd., represents Western Union Financial Services International (USA), which handles significant inward remittances to Sri Lanka. 

Among the other investments of MMBL is the largest Sri Lankan stake in Energizer Lanka Ltd., the local subsidiary of Energizer Holdings Inc. (USA), which is engaged in production and marketing of Energizer and Eveready batteries in Sri Lanka.

Meanwhile, a joint venture between MMBL and Intertek Testing Services (UK) Ltd. has seen a significant market share in testing and certifying petroleum and agricultural products, clothing and textiles.

The MMBL group is currently focusing on several agricultural projects and a forestry project with a view to moving on to new fields. MMBL also has a portfolio of real estate in strategic locations throughout the island, including in the north and the east for development.