Crafting legacy through collaboration and synergy

THE recent decision by business magnate Dhammika Perera to acquire 50% of LAUGFS Holdings Ltd. (LHL) has taken the Sri Lankan corporate world by surprise.

- BY DR. W.K.H. WEGAPITIYA

For decades, Perera has built his reputation on outright acquisitions and consolidating controlling stakes—an approach that has made him one of the most powerful figures in Sri Lankan business.

This time, however, the story is different. Instead of claiming majority control, he entered into an unprecedented 50:50 partnership. The move sent ripples across boardrooms, with many calling me in disbelief, some expressing concern, and others cautiously optimistic. Many friends and peers advised me against agreeing to an equal partnership, warning me about the risks of sharing power with someone of Dhammika's stature and history.

Yet my conviction was clear. This was not an impulsive decision, but a carefully considered strategy rooted in the belief that collaboration, rather than control, is the true engine of sustainable business in today's world.

We live in a time of relentless change-geopolitical instability, climate risks, technological disruption, and shifting consumer behaviours have made the business environment more volatile than ever. In such a context, clinging to traditional notions of ownership-insisting on 51% control-can be shortsighted.

Entrepreneurs of our generation must recognise that resilience comes not from solitary strength but from combining complementary capabilities. In other words, two strong hands can steady the wheel better than one.

Global research backs this. A study by the Boston Consulting Group shows that in times of macroeconomic turbulence, joint ventures often outperform mergers and acquisitions because they distribute risk and mobilise synergies more effectively. Equal ownership structures, in particular, are found to be more durable since they ensure balanced commitment from both partners.