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Sri Lanka Insurance Corporation
Type	Public
Founded	1961
Headquarters	Colombo, Sri Lanka
Industry	Financial services
Products	Insurance, asset management
Website	Official Website

Sri Lanka Insurance Corporation Limited, also known as Sri Lanka Insurance is the largest and strongest composite insurance provider in Sri Lanka. It is the first and only insurance company in Sri Lanka to be assigned a prime AA- rating for Insurance Financial Strength from the global rating agency Fitch Ratings London. The company now manages assets worth over US$ 500 Million.

[edit] History

Sri Lanka Insurance was incorporated by a special act of Parliament in 1961. It was formed by nationalizing the insurance industry which was run by various local and foreign private companies. It maintained the monopoly in the insurance industry until the establishment of the National Insurance Corporation in 1980. In 1988, the insurance field was liberalized by permitting private companies to enter the industry. In 1993 with the objective of providing greater autonomy to operate in this environment, the corporation was converted to a fully government-owned limited liability corporate entity. It was subsequently sold to the "Distilleries-Spence Consortium" under the Government Privatization Plan in April 2003. As such, it became a subsidiary of Distilleries Company of Sri Lanka PLC.

In July 2006, with an investment of Rs 350 million, Sri Lanka Insurance launched a state-of-the art Collision Repair Center called "Formula World". All Formula Plus Motor Insurance policy holders with a comprehensive cover maintained at the Sri Lanka Insurance are eligible to get their vehicles repaired free of charge when damaged by accidents.

In November 2006, Sri Lanka Insurance acquired Lanka Hospitals Corporation PLC, which owns and operates Apollo Hospitals Colombo, a 350 bed state of art health care facility.^[1]

The Sri Lankan Parliament's Committee on Public Enterprises (COPE) revealed that the privatization process of Sri Lanka Insurance Corporation was irregular.^[2] In 2007, a case was filed in the Supreme Court challenging the privatization of Sri Lanka Insurance Corporation citing the revelations of this report.^[3] On 4th June 2009, the Supreme Court of Sri Lanka annulled the sale of Sri Lanka Insurance Corporation in 2003. As such Distilleries Company of Sri Lanka PLC was ordered to return its stake in Sri Lanka Insurance to the government treasury.^[4] Mr. Nalaka Godahewa who is a former post-privatization CEO of the company was appointed as the competent authority on 10th June 2009 to run the company until a new board of directors will be appointed by the treasury.^[5] A new board of directors was appointed on 26 June 2009.^[6]

[edit] References

^ http://www.dailynews.lk/2006/09/15/fin03.asp
^ http://www.parliament.lk/document/ViewDocument.do?strFileName=COMDOC1019_document.pdf
^ http://sundaytimes.lk/080810/FinancialTimes/ft315.html
^ http://www.island.lk/2009/06/05/news1.html
^ http://sundaytimes.lk/090614/FinancialTimes/ft300.html
^ New Chairman and Board of SLIC appointed by President The Official Government News Portal of Sri Lanka - Press Release, 2009-06-26

[edit] External links

[0] ttp://www.dailynews.lk/2006/09/15/fin03.asp

[1] ttp://www.parliament.lk/document/ViewDocument.do?strFileName=COMDOC1019_document.pdf

[2] ttp://sundaytimes.lk/080810/FinancialTimes/ft315.html

[3] ttp://www.island.lk/2009/06/05/news1.html

[4] ttp://sundaytimes.lk/090614/FinancialTimes/ft300.html

[5] New Chairman and Board of SLIC appointed by President The Official Government News Portal of Sri Lanka - Press Release, 2009-06-26

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