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COPE recommends closure of loss-making overseas branches of SLIC

Published

3 years ago

2023/03/15

Sahan Weerasooriya

COPE committee in session

By Saman Indrajith

The Committee on Public Enterprises (COPE) will ask the Ministry of Foreign Affairs to take steps to close two branches of the Sri Lanka Insurance Corporation in the Maldives and Seychelles, as they are making huge losses.

The COPE made that decision during a meeting to review the Auditor General’s reports and current performance of the Sri Lanka Insurance Corporation (SLIC) Limited for the financial years 2019 and 2020.

The COPE Chair, SLPP MP Ranjith Bandara, also asked SLIC officials why it has still not submitted its corporate annual report, for the year 2021, to Parliament, and said that by delaying the annual reports, the institution is attempting to undermine the authority of the Parliament. Accordingly, COPE members pointed out that due to the delay in the annual reports, the SLIC has failed to get a proper understanding of the annual financial situation of the affiliated institutions.

The Chief Executive Officer of the Insurance Corporation said that the relevant report has been submitted to the Ministry of Finance. Officials pointed out that the delay was due to it having to be translated. Accordingly, the COPE recommended that all annual reports, which are overdue, be submitted within one month.

The Committee also drew attention to the failure to close the two branches established in the Maldives and Seychelles Islands, which have suffered huge financial losses. The chief financial officer of the corporation pointed out that since the respective branches are not functioning at the moment, money are not spent on them and the money, currently available, has been deposited in the Bank of Ceylon branches in the respective countries. He also mentioned that after the completion of the tax clearance work, by the Inland Revenue Tax Authority of Maldives, the closure of the relevant institution can be completed. The Chairman mentioned that COPE will take steps to send its observations to the Ministry of Foreign Affairs in order to complete the said work.

The Committee also paid attention to the lease agreement related to the land and building, currently used by the President’s Secretariat, belonging to the Sri Lanka Insurance Corporation Limited. It was revealed that the property, with an estimated fair value of 798,000,000 rupees, which was given to the Presidential Secretariat on tax basis, was given back to the Corporation last year, as agreed, but due to the Covid pandemic, it was revealed that the Presidential Secretariat took it again.

The Secretary to the Ministry of Finance stated that during the discussion between the two parties, the Presidential Secretariat agreed to pay the arrears of rent, in installments, for the period of use of the land, in question, and to enter into a new agreement, from January 2023.

The COPE Chair informed the Secretary to the Ministry of Finance to submit a report on the same within two weeks.

The COPE also paid attention to the progress of investigations against fake brokers related to the Sri Lanka Insurance Corporation. Complaints were made to the Criminal Investigation Division about this, in 2014, and the Committee inquired about its progress and current status.

The Chief Executive Officer mentioned that this incident took place when the Insurance Corporation was privatized and it was not looked into because a complaint had been made to the Criminal Investigation Division. However, he informed that the situation can be investigated and reported.

The COPE thus instructed the Chair of Sri Lanka Insurance Corporation to submit a report in this regard, within two weeks.

Moreover, the COPE inquired from officials regarding not separating the long-term insurance business and the general insurance business into two separate companies within the Sri Lanka Insurance Corporation structure.

The Chair pointed out that according to a comparative analysis done by the Committee, though the life insurance market in Sri Lanka has grown by 21% in 2021, the life insurance market of the Sri Lanka Insurance Corporation has grown only by 14%. The Chair further stated that all other insurance companies in Sri Lanka run long-term insurance and general insurance separately.

The Chair of the Corporation stated that though it is not necessary to separate it as a government-owned institution, but the Ministry has been requested to give a proper decision about it. The Committee discussed this at length and the Chair gave recommendations to the Secretary to the Ministry of Finance to give a decision on this immediately.

The COPE further focused its attention on the market share growth strategies of the Sri Lanka Insurance Corporation. Officials present mentioned that although there was some setback in their market share last year, they are currently working to increase it. Therefore, they pointed out that there has been significant growth in the life insurance market as of January this year compared to last year.

Pointing out that the total assets of the Sri Lanka Insurance Corporation are 184 billion rupees, the COPE Chair recommended to the CEO of the Corporation to submit a report on the future trade promotion strategic plans of the Insurance Corporation to the Committee as soon as possible.

The COPE Members pointed out that the policyholders are inconvenienced due to the fact that the insurance companies do not properly inform the people while getting the insurance cover. The Members also pointed out that the insurance holders are in a lot of trouble, especially when they fail to submit the original copy of the insurance bill. Accordingly, the Chair informed that steps should be taken to inform the policyholders properly.

The Committee also directed its attention towards the staff of the Sri Lanka Insurance Corporation. The CEO mentioned that the corporation employs 2535 permanent staff and 232 employees, on contract basis. He further mentioned that steps have been taken to introduce a task factor index to evaluate the work performance levels of employees. COPE directed the Chair of the Insurance Corporation to conduct a full human resource audit of the Corporation and submit a report to the committee, within six months.

The COPE also questioned the top management of the Insurance Corporation about the necessity of setting up a body, called the Management Service Insurance Company, to decide the salary scales of the top management of the Insurance Corporation. It was disclosed that 700 million rupees will be spent to pay the salaries of 93 people in the top management of the institution.

Officials mentioned that since the insurance market is highly competitive, it is imperative to maintain the confidentiality of top management’s ratings. The COPE Chair suggested to the Corporation Chairman to convey a correct opinion on the running of this company, within two weeks.

Pointing out that the Corporation has not done a proper evaluation of the performance of the branches of the Sri Lanka Insurance Corporation, the COPE Chair directed that the correct information, regarding the relevant branches, be provided to the Auditor General.

The IT network used by the Insurance Corporation was also discussed at length, and COPE inquired about the information technology network proposed to be newly established and the selection of institutions for it.

In 2015, the Foreign Employment Bureau took steps to introduce an insurance system for foreign workers in Arab countries and it had also received Cabinet approval to do it without calling for tenders. It was given to the Insurance Corporation and the Committee questioned at length about the Corporation calling for bids from a single party and giving them a bid value of $100. According to the audit conducted by the Auditor General, the Sri Lanka Insurance Corporation does not have any information about this transaction, which resulted in a loss running to millions.

The CEO of the Corporation informed that his Corporation has not introduced an insurance system and only administrative work has been done and payment has been received only for that. Accordingly, the COPE Chair informed that when the Foreign Employment Bureau is called before the Committee again, steps will be taken to call the officials of the Insurance Corporation.

Furthermore, the COPE recommended to the CEO of the Corporation to investigate the information and submit a detailed report with documents within two weeks.

Apart from the stated, the COPE Chair informed the Auditor General to provide a special audit report related to the mega branch building, onKinsey Road, Borella, owned by the Insurance Corporation.

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Prof. Pieris says Buddha Dhamma recognised as source of law under Constitution

Published

1 hour ago

2026/09/12

Thilina Walpola

G.L. Peiris

Former Minister and People’s Joint Opposition Convener Prof. G.L. Peiris has challenged the assertion that the Supreme Court’s determination on the 22nd Amendment to the Constitution would be based solely on law and not Buddhist teachings, arguing that such a position is inconsistent with Article 9 of the Constitution and established judicial precedent.

In a special statement, titled “Buddhist Doctrine as a Source of Law in Sri Lanka”, Prof. Peiris has said the issue had arisen during the 22nd Amendment determination proceedings when Ven. Balangoda Kassapa referred to the Buddha Dhamma in his submissions.

According to Prof. Peiris, the Chief Justice responded that the determination would be made on the basis of the law and not Buddhist teachings.

Describing this as a “cavalier dismissal” of the Buddha Dhamma. Prof. Peiris has said it is contrary to Article 9, which gives Buddhism the foremost place and requires the State to protect and foster the Buddha Sasana.

Full text of the statement: In the 22nd Amendment determination proceedings, Venerable Balangoda Kassapa, in his submissions, made reference to the Buddha Dhamma. His Lordship the Chief Justice, in reply, made the strong assertion that the determination would be made on the basis of the law and not Buddhist teachings. This cavalier dismissal of the Buddha Dhamma is totally inconsistent with Article 9 of the Constitution and its authoritative interpretation in judicial decisions.

I. Authoritative Sri Lankan Judicial Authority A few examples may be cited.

In the Antiquities Amendment Bill, the Supreme Court, in its determination, observed: “The expression Buddha Sasana is wider than Buddhism and includes the entire establishment, together with objects and places of religious practices and worship of Buddhists”.

In Re the Thirteenth Amendment to the Constitution and the Provincial Councils Bill, 1987 2 Sri Lanka LR 312, Wanasundera J, referring to the term Buddha Sasana, said that it was “a compendious term encompassing all ancient, historic and sacred objects and places which have from ancient times been associated with the religious practices and worship of Sinhala Buddhists”.

It is clear that the Buddha Sasana is not confined to matters of ritual or practice, but includes the substance of Buddhist teachings. This is borne out clearly in other judgments of the Supreme Court.

An explicit example is the determination of the Supreme Court in the Ayurveda Amendment Bill, SCSD, numbers 22-35/2023, where the Court declared: “We hold that Buddha Sasana in Article 9 of the Constitution includes the dhamma, principles and teachings of Buddhism, including in particular recognized and undisputed codifications of the teachings of Lord Buddha”.

There are several other passages in the judgment which offer strong authority on the point.

The Court declared: “We determine that the word Buddha Sasana in Article 9 is a compendious term and includes the entire establishment of Buddhism as defined above. We conclude that the Tripitaka, consisting of the Vinaya Pitaka, the Sutta Pitaka and the Abhidhamma Pitaka, falls within the word Buddha Sasana. Hence the State has a duty inter alia to protect and foster the Tripitaka”.

The Court was uncompromising in its declaration that “While retaining the word Buddhism to denote the religion to which foremost place has been accorded in the Republic, the word Buddha Sasana was used to impose a duty on the State to protect and foster the entire establishment of Buddhism”.

The Court’s approach is very clear from the following passage: “We must proceed to interpret Article 9 of the Constitution on the basis that this change was intentional on the part of the legislature. It was meant to cover an area wider than Buddhism”.

II. International Judicial Authority

There is valuable material in the jurisprudence of the International Court of Justice at The Hague.

Judge C. G. Weeramantry, in his dissenting opinion in the ICJ’s 1996 advisory opinion on the legality of the threat or use of nuclear weapons, said that Buddhism could provide an important humanitarian perspective when considering the legality of nuclear weapons. The judge cited as his source the work by Walpola Rahula, entitled What the Buddha Taught, 1959.

Similarly, Judge Weeramantry, in his separate opinion in the maritime delimitation in the area between Greenland and Jan Mayen case, 1993, commented on the international legal concept of equity. In this connection, he referred to “the elaborately researched concept of fairness and justice in Buddhism”.

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GR leaves FCID after making statement over MiG deal

Published

1 hour ago

2026/09/12

Thilina Walpola

Former President Gotabaya Rajapaksa left the Financial Crimes Investigation Division (FCID) last evening after making a statement for several hours in connection with the ongoing investigation into the controversial procurement of MiG fighter aircraft.

Rajapaksa arrived at the FCID Headquarters yesterday morning after being summoned by investigators to assist with the inquiry into the procurement and related financial transactions involving the aircraft acquired for the Sri Lanka Air Force.

He was questioned for several hours before leaving the premises later in the day.

Meanwhile, former Air Force Commander Air Chief Marshal Roshan Goonetileke also appeared before the FCID on Thursday to provide a statement in connection with the same investigation.Goonetileke left the FCID after being questioned for more than five hours.

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Dengue cases top 97,000 in 2026

Published

1 hour ago

2026/09/12

Thilina Walpola

Sri Lanka has recorded 97,027 dengue cases so far this year, with 1,536 cases reported during the first part of September, according to the National Dengue Control Unit.

The dengue death toll has also risen to 74, highlighting the continuing threat posed by the mosquito-borne disease.

The Western Province has recorded the highest number of cases, with 51,180, followed by the Southern Province with 14,036, the Central Province with 8,958, and Sabaragamuwa with 7,998.

At district level, Gampaha has recorded the highest number of cases at 20,622, followed by Colombo with 19,168.

Kandy has reported 7,199 cases, while Matara and Kalutara have recorded 6,186 and 6,218 cases, respectively.

The Health authorities continue to identify 40 Medical Officer of Health (MOH) areas across the country as high-risk zones.

The National Dengue Control Unit has urged the public to remain vigilant and take necessary measures to prevent mosquito breeding, particularly as dengue transmission continues to affect several parts of the country.