Business

LOLC General Insurance achieves Rs. 6bn in Gross Written Premium in less than 10 years – the first in Sri Lanka

Published

5 years ago

2021/01/9

Kithsiri Gunawardena, Chief Executive Officer, LOLC General Insurance

LOLC General Insurance, a fully-owned subsidiary of the LOLC Group recently became Sri Lanka’s first General Insurance company to achieve Rs. 6 billion Gross Written Premium (GWP) in less than 10 years. The company reached the Rs. 6 billion mark in December 2020, becoming the fastest General Insurance company to achieve this milestone in the industry. LOLC General Insurance CEO, Kithsiri Gunawardena talks of the many key attributes that helped reach this achievement.

What were the main factors that helped LOLC General Insurance reach the 6 billion GWP mark in less than 10 years?

LOLC General Insurance is a young company compared to the rest in the industry. During the last few years we continuously streamlined the processes and achieved greater coordination between different units of the company. The entire staff was motivated to work as one team and embark on a customer centric approach. A scheme was introduced whereby a pre-designated percentage of the company profits are shared with our staff thereby elevating them to become true stakeholders of our business. We also critically analysed our expenses and introduced mechanisms to achieve greater efficiency and productivity. The combination of these measures and our aggressive sales model supported by the commitment of our team resulted in the company being able to secure a substantial volume of new business outside of the group reflecting that we are well aligned to the needs of the market.

With a service first mind-set and the strong backing of the LOLC Group, LOLC General Insurance became the fastest growing Insurer in the industry with the highest growth in Motor as well as Non-Motor portfolios. This achievement was also made possible by the trust and confidence placed in us by our customers throughout the country as well as the indispensable contribution made by our staff.

The aggressive approach in sales, flexibility in policy options and a customer centric product portfolio has enabled this growth over the years. The company hopes to maintain the same focus, approach and excellence in the years ahead to sustain this growth momentum.

How did the company manage to progress despite the pandemic in 2020?

Year 2020 was probably the most challenging year for most businesses in the country and the insurance industry recorded a negative growth. Interestingly, LOLC General Insurance managed to record its best performance during this year. Although external operating conditions remained challenging, the General Insurance business performed steadily. Most disruptions create opportunities and we capitalised on becoming even more aggressive when most others opted to be cautious. By December 2020, we were able to reach the Rs. 6 bn mark mainly because of the commitment of our team who were always geared and motivated to offer uninterrupted services to the customers even during the pandemic.

What makes LOLC General Insurance different from the rest in the industry?

The aggressive business model, highly motivated and loyal staff, passionate leadership, unstinted reputation within the market on service quality and last but not least the strong backing of the LOLC Group is what makes us stand apart.

How do you view the opportunity and potential in the local market for General Insurance?

The opportunities are immense in the market. With a saturated Motor market and the challenge of limited new registrations for the foreseeable future, the price and service will be key in this sphere. The Non-Motor market is noticeably underpenetrated and this gives LOLC General Insurance opportunities to grow with our unique products and services to customers.

What are your future expansion plans?

2021 will see innovations in terms of customer engagement with respect to digital transformation as well as unique product ranges and service standards being introduced. By locating branches strategically, the company is enhancing customer convenience. Our focus on accomplishing full automation remains strong with the entire process automated end-to-end, from meeting the customer to the point of delivery while policy servicing is achieved via technology platforms. The country-wide reach will be enhanced with the formation of new regions/branches and close to 70 dedicated service points being established.

Any plans to venture into international markets?

With LOLC expanding into many markets in Asia and Africa, we too hope to expand the insurance services and products to several selected and potential international markets in the near future. LOLC Group has a very strong and highly respected brand presence in all the markets we operate. In some of these markets, the Insurance industry is in the early stages of development. Thus, the regulators are keen on the introduction of micro insurance products to support small and medium scale businesses for systemic stability.

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Business

Resilience amidst geopolitical headwinds: Sampath Bank posts Rs 6.2 bn PAT in Q1 2026

Published

2 hours ago

2026/05/15

Thilina Walpola

Sampath Bank reported Total Operating Income of Rs 28.5 Bn for the quarter ended 31st March 2026, supported by steady growth in Net Interest Income (up 5%) and Net Fee and Commission Income (up 28%) year-on-year.

Notwithstanding this performance, Profit After Tax (PAT) declined by 26% to Rs 6.2 Bn, due to significantly higher impairment provisions of Rs 4.5 Bn recognised in response to the continued expansion of the loan book and taking into account the evolving geopolitical conditions. Additionally, one-off gains from the disposal of Treasury Bills and Bonds moderated to Rs 0.7 Bn in 2026, a decrease of Rs 2.0 Bn compared to the elevated levels recorded in the previous year.

The Bank’s total asset base crossed the Rs 2 Tn milestone for the first time, representing a significant achievement supported by strong loan growth of Rs 127 Bn in the first quarter of 2026.

The Sampath Group delivered a Profit Before Tax (PBT) of Rs 9.4 Bn and a Profit After Tax of Rs 6.8 Bn for the quarter ended 31st March 2026.

Fund Based Income

The Bank reported total interest income of Rs 46.5 Bn, reflecting year-on-year growth of 6%. This increase was primarily driven by the expansion of the loan portfolio during the reporting period and in the latter part of the previous year, compared to the negative loan growth recorded in the corresponding period of the previous year, as well as an upward movement in the Average Weighted Prime Lending Rate (AWPLR).

Interest expense for the quarter also increased by 6% to Rs 26.4 Bn, reflecting growth in both deposit and borrowing portfolios. As a result, Net Interest Income (NII) stood at Rs 20.1 Bn, an increase of 5% compared to the corresponding quarter of the previous year.

The Net Interest Margin (NIM) contracted marginally by 2 basis points to 4.09%, from 4.11% reported for 2025. This decline was primarily attributable to lower yields across the Bank’s investment portfolio, reflecting reduced rates in the Government Securities portfolio compared to the previous period.

Non-Fund Based Income

During the three-month period ended 31st March 2026, the Bank’s total non-fund based income declined marginally by 4% to Rs 8.3 Bn, mainly due to a decrease in capital gains from the sale of Treasury bills and bonds. Capital gains declined from Rs 2.7 Bn in 1Q 2025 to Rs 0.7 Bn in 1Q 2026, representing a year-on-year decline of 75%.

Net fee and commission income, driven by credit expansion, higher trade volumes and increased card usage, recorded a robust growth of 28% across all income channels, reaching Rs 6.1 Bn by the end of the quarter.

Business

CAHM – 7 Star Junior Chef Competition Season 01’s Grand Finale

Published

3 hours ago

2026/05/15

Thilina Walpola

The Grand Finale of the CAHM – 7 Star Junior Chef Competition – Season 01 was successfully held on 9th of May at the CAHM premises, SLIIT Main Campus, Malabe, celebrating the talent, creativity and passion of young aspiring chefs from across Sri Lanka.

Organised by the Colombo Academy of Hospitality Management (CAHM) at SLIIT, with 7 Star by Serendib Flour Mills as Title Sponsor, the national-level competition provided students aged 13 to 16 with a platform to explore culinary arts, gain practical exposure and discover future opportunities in hospitality.

The Colombo Academy of Hospitality Management (CAHM), Sri Lanka’s largest private hospitality, foods, tourism, and events education provider, in partnership with the William Angliss Institute, (RTO – 3045) Australia and operating within the SLIIT premises Malabe. Through this partnership, CAHM delivers internationally competitive training in culinary arts, offering students an exceptional learning experience that prepares them for opportunities in Sri Lanka and on the global stage.

The competition’s journey began with an encouraging islandwide response, attracting over 5,000 inquiries from aspiring participants, parents and schoolteachers, with over 1,400 applications submitted. Following a careful evaluation process, 204 applicants were shortlisted for the competition, progressing through structured rounds that offered hands-on culinary exposure, industry insights and preparatory guidance, before the final 10 contestants were selected to compete at the Grand Finale.

Following several competitive rounds, 10 finalists secured their places at the Grand Finale. The finalists were Bareerah Bariq of Muslim Ladies College Colombo 04, Nikhel Venuk Elisha of St Joseph’s College Colombo 10, Anooshka Vigneswaran of Girls High School Kandy, Prabhasha Muthubhashini Gunawardhana of Kalutara Balika Vidyalaya, Shamha Nazim of Ilma International Girls’ School Colombo 05, Sithuki Siyansa Methsandi of Buddhist Ladies College Colombo 07, Sandaruwani Nisansala of Moratu Maha Vidyalaya Senuth Insanda of Nalanda College Colombo 10, Pinidu Senuranga Fernando of Boys’ Model School Malabe, and Poorna Bandara Tennakoon of Royal International School Kurunegala.

Business

Mahogany Masterpieces launches new digital flagship

Published

3 hours ago

2026/05/15

Thilina Walpola

Website Launched

Mahogany Masterpieces (Pvt) Ltd, Sri Lanka’s pre-eminent luxury solid wood furniture house and turnkey interior solutions provider, today announces the launch of its new digital flagship at www.mahogany.lk, alongside the introduction of what the company believes to be the most sophisticated AI Concierge deployed by any luxury brand in Sri Lanka.

The launch marks a defining chapter in the brand’s fifty-two-year history: a company founded on uncompromising craft, now presenting itself to the world with a digital presence that matches the standard of its showroom. The new website consolidates for the first time the full breadth of what Mahogany Masterpieces offers; bespoke solid wood furniture across beds, dining, lounge, and occasional collections; end-to-end interior solutions from concept to completion; the pioneering Furniture Spa restoration and care service; and a 46-year export programme now serving 16 countries.

Sri Lanka’s Most Sophisticated Luxury AI Concierge

The centrepiece of the new digital experience is the MM AI Concierge. A custom-built, brand-trained conversational assistant deployed natively across the website. Available at any hour and on any page, the Concierge carries deep knowledge of Mahogany Masterpieces’ full product range, materials, finishes, interior services, export capabilities, and brand heritage. It responds with the warmth and precision of the MM showroom team, handling enquiries about the Piano Finish, custom fabrication timelines, Furniture Spa services, and interior projects around the clock.