News
Fitch downgrades seven Sri Lankan Insurers’ National IFS Ratings;maintains Watch Negative
Fitch Ratings downgraded the National Insurer Financial Strength (IFS) Ratings of seven Sri Lankan insurers following the recent sovereign downgrade and recalibration of the agency’s Sri Lankan National Rating scale. The seven insurers’ ratings have been maintained on Rating Watch Negative (RWN).
The recalibration is to reflect changes in the relative creditworthiness among Sri Lankan issuers following Fitch’s downgrade of Sri Lanka’s Long-Term Local Currency Issuer Default Rating (IDR) to ‘CC’ from ‘CCC’ on 1 December 2022. Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of ‘CCC+’ or below.
National rating scales are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Sri Lanka’s national rating scale is denoted by the unique identifier ‘(lka)’.
Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale. National rating scales are not comparable with Fitch’s international rating scales or with other countries’ national rating scales. For details, see Fitch Ratings Recalibrates Sri Lanka’s National Rating Scale, dated 19 December 2022.
The National IFS Ratings of the Sri Lankan insurers take into consideration their creditworthiness relative to other issuers in the country. The recalibration of the Sri Lankan National Rating scale has resulted in downgrades of the National IFS Ratings of the following insurers:Sri Lanka Insurance Corporation Limited to ‘A(lka)’/RWN from ‘AA(lka)’/RWN; National Insurance Trust Fund Board to ‘A-(lka)’/RWN from ‘A+(lka)’/RWN;
People’s Insurance PLC to ‘A-(lka)’/RWN from ‘A+(lka)’/RWN; HNB Assurance PLC to ‘A-(lka)’/RWN from ‘A+(lka)’/RWN; HNB General Insurance Limited to ‘A-(lka)’/RWN from ‘A+(lka)’/RWN; Continental Insurance Lanka Limited to ‘A-(lka)’/RWN from ‘A+(lka)’/RWN; and Construction Guarantee Fund to ‘BB(lka)’/RWN from ‘BBB-(lka)’/RWN.
KEY RATING DRIVERS
The downgrades of the National IFS Ratings of the seven insurers are driven by the downgrade of the sovereign’s Long-Term Local-Currency IDR and the recalibration of the national rating scale while also reflecting the relative creditworthiness among Sri Lankan issuers.
We believe that the investment and liquidity risks of insurers have increased due to the weaker credit profile of the sovereign and the subsequent rating action on various financial institutions; see Fitch Downgrades 10 Sri Lankan Banks’ Ratings, dated 12 January 2023.
The rated insurers’ investment portfolios, similar to that of other insurers in the country, are dominated by fixed-income securities issued or guaranteed by the government, deposits and securities issued by local banks, non-bank financial institutions and corporations. Fitch maintains the ratings of all domestic Sri Lankan banks on RWN amid the likelihood of capital and funding stress as the default risk on domestic debt increases while access to foreign-currency funding remains constrained.
We have maintained the insurers’ ratings on RWN to reflect the potential for these insurers’ creditworthiness relative to other entities on the Sri Lankan National Rating scale to further deteriorate amid high investment and liquidity risks, pressure on regulatory capital positions and a weaker financial performance outlook. The heightened investment risks and earnings pressure amid the weak operating environment could affect insurers’ regulatory capital profiles.
Prime Minister Dr. Harini Amarasuriya departed for Manila, Philippines, at midnight on 8 March on an official visit at the invitation of the Asian Development Bank (ADB), where she will participate in events marking International Women’s Day.
Upon arrival at the Ninoy Aquino International Airport (NAIA) in Manila, the Prime Minister was welcomed by Dr. Chanaka Thalpahewa, Ambassador of Sri Lanka to the Philippines, along with officials of the Government of the Philippines and representatives of the Asian Development Bank.
During the visit, the Prime Minister is scheduled to deliver a keynote address at the International Women’s Day event hosted at the ADB Headquarters in Manila.
On the sidelines of the event, the Prime Minister will also hold bilateral meetings with several Ministers of the Government of the Philippines to further strengthen cooperation and bilateral relations between Sri Lanka and the Philippines in areas of mutual interest.
[Prime Minister’s Media Division]
News
It is the government’s responsibility to ensure women’s rights are realized in everyday Life, and are not confined merely to Laws – PM
Prime Minister Dr. Harini Amarasuriya stated that it is the responsibility of the government to ensure that the political, economic, and social rights of women are not confined merely to laws or written documents, but are realized as a reality in the daily lives of every woman in the country.
The Prime Minister made these remarks while participating as the Chief Guest at the National Celebration of International Women’s Day 2026, held on March 8 at the Rabindranath Tagore Memorial Auditorium of the University of Ruhuna in Matara under the theme “The Pride of a Prosperous Country – She is the Nation’s Path Forward.”
Addressing the gathering, the Prime Minister further stated:
“The freedoms we enjoy today including the right to education and political rights were won through the struggles carried out by women throughout history. This day is not merely confined to flowers. Our goal is to safeguard those rights and create an environment where every woman in our country can lead her life towards a better future.
The products of women entrepreneurs in this country should not remain confined to their local areas. The government is working to create an environment to ensure that they become active contributors to the national economy.
At the same time, a proposal has recently been presented by the Parliamentary Women’s Caucus to introduce a National Care Policy in order to recognize both the paid and unpaid contributions made by women for their families and for the country’s economy.
The Prime Minister also emphasized that women have a significant responsibility to stand for humanity in the face of the various crises occurring around the world. She called upon the women of the country to unite with compassion and take the lead in raising their voices for peace.
Addressing the event, Minister of Women and Child Affairs Saroja Savithri Paulraj stated that a new era has dawned in which the tears and sweat shed by women working abroad to strengthen the country’s foreign reserves will receive due recognition. She further noted that a comprehensive mechanism involving all ministries will be implemented to support women entrepreneurs, female heads of households, and women who have experienced violence.
At this national event, the Prime Minister also presented appreciation awards to 25 successful women entrepreneurs from across the island.
The occasion was attended by the Minister of Industry and Entrepreneurship Development Sunil Handunneththi, Southern Province Governor Prof. Susiripala Manawadu, Deputy Ministers including Dr. Namal Sudarshana, along with ambassadors, public representatives, and a large number of participants.
[Prime Minister’s Media Division]
The Iranian warship Iris Dena was given permission by India to dock three days before it was torpedoed by a US submarine, India has said.
Foreign Minister S Jaishankar said Iran had sought permission for three of its ships to dock at Indian ports on 28 February – the day the US and Israel began a war on Iran – and permission was granted by India on 1 March.
The ships’ movements between 1 and 4 March are not clear and nor is why only one of them made it to India.
The sinking of the Iris Dena, with 130 sailors on board, in international waters off Sri Lanka’s southern coast on 4 March marked a dramatic widening of the war – and raised questions about India’s authority in its backyard.
It was the first military strike outside the Middle East since the US and Israel launched their war on Iran. President Donald Trump has said destroying Iran’s navy is one aim of the assault.
The three Iranian ships – Iris Dena, Iris Bushehr and Iris Lavan – had all participated in a military exercise hosted by India between 15 and 25 February in the coastal city of Visakhapatnam.
They left Indian waters on 25 February and were likely to have been in international waters on 28 February – when the US and Israel began attacking Iran.
“The Iranian side had requested permission on 28 February for three ships in the region to dock at our ports. This was accorded on 1 March,” Jaishankar told parliament on Monday. “Iris Lavan actually docked on 4 March in Kochi. The crew is currently in Indian naval facilities. We believe that this was the right thing to do.”
On 4 March, Iris Dena sank after being hit by a torpedo fired from a US submarine, killing at least 87 of its crew members.
According to the Indian Navy, the Iris Dena was operating about 20 nautical miles – roughly 23 miles (37km) – west of Galle in waters that fall under Sri Lanka’s designated search-and-rescue zone on the day it was struck.
The US tracks vessels across the world’s oceans, and a quarter of its submarine fleet of 65-70 is at sea at any given time, according to analysts.
Iran’s Foreign Minister Abbas Araghchi said last week the US had “perpetrated an atrocity at sea, 2,000 miles away from Iran’s shores” and that the warship was “struck in international waters without warning.”
Later, Sri Lanka said it had provided sanctuary for Iris Bushehr on 5 March, a day after it requested for docking following an engine malfunction.
Eventually, India also confirmed that Iris Lavan was docked in its southern city Kochi.
The BBC has written to the Iranian embassy in India and India’s external affairs ministry seeking clarification on the movements of the three Iranian naval vessels after Delhi granted them permission to dock.
US Defence Secretary Pete Hegseth has touted the attack on Iris Dena as an example of America’s military prowess, claiming it was “the first sinking of an enemy ship by a torpedo since World War Two”.
While it is the first time since 1945 that an American submarine has sunk an enemy ship this way, the UK and Pakistan have both sunk vessels using torpedoes since then.
The Iris Dena was one of about 20 Iranian navy vessels destroyed since Israel and the US launched co-ordinated strikes on Iran.
[BBC]
Prime Minister on official visit to Manila, Philippines
It is the government’s responsibility to ensure women’s rights are realized in everyday Life, and are not confined merely to Laws – PM
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