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Retiring from Aitken Spence and incurring Premadasa’s wrath over misinformation

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by Charitha. P. de Silva

(Excerpted from C.P. de Silva’s Memoirs)

Around March, 1991 I suddenly detected a small patch on my right retina. The last time this happened was in 1980 when it was diagnosed as Exudative Retinopathy by Dr Rolf Blach of Harley Street. I was given laser treatment at Moorefields Hospital, and the distortion in my vision disappeared almost completely. Dr Blach told me that the cause was uncertain but most likely due to stress. I recalled all this when I awoke to find an ominous patch in my vision. I sat down and considered my position.

I had been Chairman and MD of Aitken Spence for almost 20 years. I had achieved a great deal and received a number of Honours and a lot of recognition. With the share prices of Aitken Spence going through the roof – they were about Rs 320 – I would be comfortably off if I were to sell my shares. I had already distributed some of my shares to Chandan (my son) and the others and Chandan was in need of funds to buy a house in London.

I had been carrying the burden of being both Chairman and MD of AS for a long time – too long a time – and decided that I had been given a signal to quit while I was still ahead. I discussed it with Susheela and she was totally in favour of my quitting. I made up my mind within a day, and decided to inform my co-directors of my decision.

I wrote a good letter in which I told them of my decision and the reasons for it. I wanted more leisure and time to spend with my family. I also pointed out that the company too would benefit from my retirement. I realized that my retirement when apparently at the height of my powers might cause some unease in the share market and among our bankers. I therefore wrote an eloquent letter to all of them, and even to JYM Pillay of Singapore Airlines whom I had known since 1972.

The share market appreciated my decision and share prices rose further. I sold Chandan’s shares and remitted the proceeds to him. Because we (the directors) had an understanding that we would not sell our shares while in office I gave them six months’ notice of my retirement from September 30. I knew that Michael (Mack) would be very happy about the prospect of taking over. I did not anticipate the reaction of Norman (Gunawardena) and GC (Wickremasinghe). These two directors had grown used to the comfortable prospect of my being there indefinitely (I had already gone three years beyond the usual retiring age in the private sector, 60 years) bearing the full responsibility of running the company while they ran their departments without any interference.

They had very good salaries and perks and the company was doing extremely well: the profits had gone up five-fold in the last three years and the share prices were booming. They did not see any reason for a change. Norman went to the extent of trying to persuade me to continue even as a non-executive Chairman working from home!

GC became very unpleasant about my selling Chandan’s shares without their permission. Despite my pointing out that Sivaratnam had sold some of his shares in order to buy a property in Australia, he wrote to me accusing me of acting unethically. He could not see that I had every right to sell Chandan’s shares after giving notice of my intention to quit. He was not the most balanced individual I knew, and I lost nothing in losing his friendship.

Sivaratnam and the others who probably felt deeply grateful for the largesse they had received from me at the time we went public (I had persuaded Mack, Gunawardena and Wickremasinghe to transfer 10% of their shares to them at par before a three for one Bonus Issue) understood my position completely and after approving a cruise to the Greek Islands for Susheela and me, set about organizing a farewell party for me at the Hilton on September 30, my birthday.

Susheela and I had a memorable holiday and came back to a truly glorious farewell party on my birthday. There was a huge crowd and I wore my Japanese Award. They gifted me the Honda Accord that I had been using and transferred to me the small Daihatsu Charade that Susheela had been driving, at a very reasonable cost. It was an altogether happy parting. The feeling of relief with the shedding of responsibility was tremendous. My eye condition improved without my having to get laser treatment.

Once I retired from AS I decided that I would cut myself off from its activities. There were two reasons for this. The first was that I thought it improper for me to be looking over MLM’s (my successor’s) shoulder. The second was that I feared it would be stressful as I might not agree with his policies.

I was still the Chairman of LOLC and at about this stage Lalith de Alwis who had been a competent MD resigned to go abroad. It therefore became incumbent on me to become an Executive Chairman going to office every day.

However, I decided that it should only be a half-day if I were not to deny myself the benefit of retiring from AS. Emmanuel Muttupulle who had been Deputy MD was promoted to MD and the company continued to prosper. It had a distinguished board of directors: Baku Mahadeva (Chairman of NDB), Chanda Coorey (Chairman of DFCC), M.T.L. Fernando (Ernst & Young) and Jehan Cassim (Chairman, BOC).

At about this time Evans Coorey, the Press Secretary of President Premadasa telephoned me and said that he had been present at a meeting with ‘very important people’ who had discussed me. They had pointed out that I had now been Chairman of LOLC for over ten years and I should be ready to retire. He asked me what I thought of it because the AGM was approaching. I assured him very courteously that I was in good health, the company was doing well, and I saw no reason to retire.

One day, not long after that, my good friend Bernard Soysa (Leftist MP) rang me and asked me whether he could come and meet me. I offered to meet him but he insisted that he should come to my home. I agreed and he turned up. Susheela was at home and we would have liked to offer him a drink, but he wanted complete privacy and I took him into our lower garden.

He told me very gravely that he had overheard a conversation in the restaurant of the Parliament concerning me. Apparently Premadasa was very displeased with me, and Bernard became concerned for my safety. He urged me not to write or say anything critical of P. and suggested that I should go abroad for some time. As it happened I had to go to Washington for some conference. Susheela was naturally very worried, and we set off.

In Washington, I learned P. had given instructions that I was not to be given any assignments by government. The only work I was doing to help the government was being the President of the Sri Lanka-Japan Business Co-operation Committee. When a government servant who was involved in the Privatisation process declined my invitation to participate in a Sri Lanka-Japan Conference that was imminent I realized that I was wasting my time trying to help government, and resigned as Chairman of the bilateral committee that I had chaired ever since 1978. It was the first such bilateral committee that the Chamber (of Commerce) had established. Now there are more than 20 of them.

One day I happened to be flying to Singapore on Singapore Airlines for which we had been GSAs (General Sales Agents) since 1972 when I became Chairman of Aitken Spence. I was flying First Class (as I usually did) and found Paskaralingam there. (Paskaralingam was Premadasa’s right-hand man, and the most powerful public servant in the country). I took the opportunity of talking to him about the strange antipathy that Premadasa had taken to me.

He explained to me that it was because we (LOLC) were occupying Lakshman’s Building that belonged to the furniture maker Lakshman Cooray. We had a long lease on it and Lakshman was very frustrated because he felt that he could get a much higher rent than we were paying. He therefore wanted to get rid of us as tenants. Paski warned me that until we vacated Lakshman’s Building we would have trouble with Lakshman because he had Premadasa’s ear. He had made a throne for Premadasa who therefore loved him.

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