Sri Lanka Insurance
Encyclopedia
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.
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 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.
The Sri Lankan Parliament's Committee on Public Enterprises (COPE) revealed that the privatization process of Sri Lanka Insurance Corporation was irregular. In 2007, a case was filed in the Supreme Court challenging the privatization of Sri Lanka Insurance Corporation citing the revelations of this report. On 4 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. The treausry was ordered to pay the purchase consideration back to Distilleries Consortium.
Mr. Gamini Senerath is the Chairman and Mr. Mohan De Alwis is the Managing Director of Sri Lanka Insurance.
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
provider in Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
. 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
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
London. The company now manages assets worth over US$ 500 Million.
History
Sri Lanka Insurance was incorporated by a special act of ParliamentParliament of Sri Lanka
The Parliament of Sri Lanka is the 225-member unicameral legislature of Sri Lanka. The members of Parliament are elected by proportional representation for six-year terms, with universal suffrage. Parliament reserves the power to make all laws...
in 1961. It was formed by nationalizing the insurance industry which was run by various local and foreign private companies. It maintained the monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
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
Limited liability
Limited liability is a concept where by a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. If a company with limited liability is sued, then the plaintiffs are suing the company, not its...
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
Distilleries Company of Sri Lanka PLC
Distilleries Company of Sri Lanka PLC is a diversified Sri Lankan conglomerate listed on the Colombo Stock Exchange with a market capitalization of US$ 300 Million. It was one of the first Sri Lankan companies to be listed in Forbes's Best Managed companies under a USD billion...
.
In November 2006, Sri Lanka Insurance acquired Lanka Hospitals Corporation PLC, which owns and operates Apollo Hospitals Colombo
Apollo Hospitals Colombo
Lanka Hospitals, formerly known as Apollo Hospitals Colombo is a multi-specialty tertiary care hospital in Sri Lanka and is one of the largest private hospitals in the country. It is situated on Elvitigala Mawatha, also known as Baseline Road, which is a direct route from the country’s...
, a 350 bed state of art health care facility.
The Sri Lankan Parliament's Committee on Public Enterprises (COPE) revealed that the privatization process of Sri Lanka Insurance Corporation was irregular. In 2007, a case was filed in the Supreme Court challenging the privatization of Sri Lanka Insurance Corporation citing the revelations of this report. On 4 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
Distilleries Company of Sri Lanka PLC
Distilleries Company of Sri Lanka PLC is a diversified Sri Lankan conglomerate listed on the Colombo Stock Exchange with a market capitalization of US$ 300 Million. It was one of the first Sri Lankan companies to be listed in Forbes's Best Managed companies under a USD billion...
was ordered to return its stake in Sri Lanka Insurance to the government treasury. The treausry was ordered to pay the purchase consideration back to Distilleries Consortium.
Mr. Gamini Senerath is the Chairman and Mr. Mohan De Alwis is the Managing Director of Sri Lanka Insurance.