Sri Lanka’s cement industry is witnessing a major shake-up with the strategic entry of business tycoon Dhammika Perera, who has acquired a 51% controlling stake in DHT Cement Ltd., marking a bold foray into one of the country’s most competitive industrial sectors.
Perera, through his new venture Vallibel X, invested $20 million—$8 million to buy out original Indian and Sri Lankan shareholders and an additional $12 million in fresh equity.
The move is seen as a significant boost for the local cement manufacturing sector, which is battling structural challenges and fierce competition from imports.
DHT Cement, the maker of PowerTech Premium Cement, operates a state-of-the-art plant in Ekala featuring German-engineered production systems.
With an installed capacity of 80 metric tons per hour, the company currently commands approximately 10% market share, which analysts believe will rise substantially following Perera’s investment.
The Sri Lankan cement market, valued at 4.45 million tons in 2024, has rebounded by 22% from the previous year, though it remains below the 2022 level of 5.45 million tons. Local production surged by 31% to 3.5 million tons, while imports fell slightly to 0.9 million tons, reflecting a shift toward domestic supply.
Despite this growth, local manufacturers continue to face heavy taxation. The Port and Airport Development Levy (PAL) and a cess on imported clinker have created a tax burden rarely seen in other industries. T
hese para-tariffs account for nearly 22% of the retail price of a standard 50kg bag of cement, impacting both producers and consumers.
The industry is currently dominated by Tokyo Cement Company (Lanka) PLC and INSEE Sanstha Cement, with Tokyo Cement reporting a production capacity increase to 4 million tons annually.
The company’s performance in the first nine months of FY25 includes Rs. 37 billion in revenue, a 14% rise in operating profit, and a 64% increase in after-tax profit to Rs. 2.8 billion.
Perera’s investment comes at a pivotal time as Sri Lanka’s construction sector is expected to recover in 2025, buoyed by the resumption of government projects and improved economic conditions. Lower interest rates and reduced construction material costs are also expected to boost demand.
In addition to its cement offerings, DHT provides mobile technical support, in-house testing, and carries SLS 107 and ISO 9001:2015 certifications. The company targets both retail and large-scale engineering projects through its bulk and bagged cement products.
This marks yet another strategic expansion by Perera, who also holds key interests in tiles, aluminium, rooftop solar, and home appliances through various companies. His entry into the cement sector is widely seen as a potential catalyst for innovation and growth within the local industry.
