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100 mn for each line of business.
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Sri Lanka’s cabinet of minister gave the go ahead on Thursday to increase the minimum solvency margins for insurance firms to Rs. 100 mn for each line of business. Cabinet spokesperson and Health Minister Nimal Siripala de Silva said the Cabinet on Thursday agreed to push through the changes to the Insurance Act, which would help protect policy holders’ interests further.
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The change to the current Act No.
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43 of 2000 needs Parliamentary approval before coming into force.
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Uncensored However, if Sri Lanka’s already chaotic political system goes through another change after the mid November Presidential polls, the proposed changes will have to face the new cabinet before enactment.
The proposed amendments have been on the cards for over two years, with a change in government in 2003 - before the changes were legislated, meaning that it had to go though the new cabinet for re-approval.
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Other changes proposed by the insurance sector regulator included recognizing inst