Business

LIC Lanka secures Rs. 2 billion capital infusion from its Indian parent company

Published

1 year ago

2025/05/12

Thilina Walpola

Prameela CR, LIC Lanka’s new MD/CEO

Timing aligns with Sri Lanka’s hunger for FDI and LICL’s ambition to shed its low-profile past

In a bold move signaling renewed confidence in Sri Lanka’s economic recovery, Life Insurance Corporation Lanka Ltd (LICL) has secured a Rs. 2 billion capital infusion from its Indian parent company (LIC of India), marking one of the largest foreign direct investments (FDI) in the island’s insurance sector this year.

The injection arrives as Sri Lanka has intensified its efforts to attract global capital while LICL is also positioning itself to reshape the underpenetrated life insurance market through aggressive expansion, tech upgrades, and innovative retirement plans targeting underserved workers in the private sector and in the informal economy.

LICL, a 23-year-old joint venture between LIC India (97% stakeholder) and Bartleet Transcapital (3%), plans to leverage the fresh funds to overhaul its IT infrastructure, streamline its 24-branch network, and launch private-sector retirement schemes – among other products including investment plans – tailored for informal and private-sector employees lacking retirement coverage.

LIC Lanka’s new MD/CEO Prameela Chittazhi Ramanadhan, a 27-year LIC India veteran, told The Island that the timing aligns with ‘Sri Lanka’s hunger for FDI’ and LICL’s ambition to shed its ‘low-profile’ past.

“This investment isn’t just capital. it’s a vote of confidence from our parent company in Sri Lanka’s potential,” Prameela asserted. “We’re addressing critical gaps: only 0.5% of GDP comes from life insurance, and millions lack pension safety nets. Our new products will redefine accessibility to this segment,” Prameela CR said.

A portion of the funds will modernise LICL’s digital infrastructure to fast track claims processing and customer service, a critical step as the insurer seeks to rebuild trust in a sector still scarred by the 1960s nationalisation of foreign firms.

“Trust is earned through consistency. In 23 years, not a single customer has accused us of unmet promises,” Prameela noted, hinting at upcoming campaigns showcasing client success stories.

LICL’s push comes amid lingering skepticism toward life insurance, partly rooted in societal beliefs. The 1961 nationalisation of insurers, which forced foreign players to exit, left a legacy of public wariness. Prameela CR acknowledged the challenge but expressed optimism: “We’ve operated here for decades without controversy. Now, we’ll be louder about our track record,” she said.

Prameela CR , a law graduate who rose through LIC India’s ranks since 1997, brings cross-functional experience to her role. Her strategy hinges on ‘localised innovation,’ blending LIC India’s global scale with targeted products for Sri Lanka’s ground realities.

Post-capital infusion, LIC Lanka is poised to be no longer the quiet player.

With insurance penetration languishing at 0.5% of GDP, far below regional peers like India (3.2%) – LICL’s gamble hinges on convincing Sri Lankans that life insurance isn’t a luxury but a necessity.

“The pension push could tap into growing anxiety over retirement security as the population ages,” LIC Lanka said.

As FDI-starved Sri Lanka watches, LICL’s Rs. 2 billion bet may prove a litmus test for foreign insurers eyeing the island’s untapped potential.

Industry analysts say LICL’s Indian pedigree could bolster its credibility. LIC India, the world’s third-strongest insurance brand, manages over $500 billion in assets, offering LICL technical expertise and actuarial firepower.

By Sanath Nanayakkare

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

21 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

21 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

21 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.