Sri Lanka Insurance has to get over US dollars 500,000 from insurance regulators in the Seychelles and the Maldives that were deposited as guarantees, Sri Lanka Insurance Corporation Joint Managing Director T.M.R. Bangsa Jayah said.
In an interview with Daily News Business he said they found that the operations in Seychelles that were started by the management appointed by the previous government were not profitable.
“There is a limited population in the Seychelles and there are only a few motor vehicles to insure.On top of that there are three well established insurers in the Seychelles and to compete with them is almost impossible due to a limited population.
“Hence recently we decided to pullout from there after a board decision”. Commenting on the Maldives operations he said that though Sri Lanka Insurance (SLI) went before Ceylinco Insurance, the SLI product was neglected. “Due to this Ceylinco has now got the upper hand and we cannot compete and we had decided to pull out.”
The joint MD said in both countries they were asked to make a deposit of US$ 250,000 each and Sri Lankan Insurance is yet to get this back from both Seychelles and the Maldives. Asked to comment of the ongoing inquiries into irregularities he said that the present management is working closely with investigators (FCID) and are assisting them.
“We have now found new documentary proof of CSN (Sports TV channel) deals with SLI and have forwarded them to the FCID.
Jayah said that some incidents have come to light where some of the former senior management members have passed payments from SLI even to paint their private residences.