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Low penetration enables great leap forward for insurance industry:Ronald Perera
by Hiran H.Senewiratne
Sri Lanka’s insurance penetration is less than two percent of the total population and there was enormous potential to grow this sector. However, motor insurance is doing well because every single vehicle owner has to obtain a vehicle insurance policy, newly appointed Chairman of Sri Lanka Insurance Corporation Ltd Ronald Perera, PC, said.
“Penetration of life insurance is less than two percent of the total population. Therefore we have to go to villages to promote and encourage people to obtain life insurance policies, especially health insurance cover to provide them with a comprehensive health coverage. This is true especially for young people who are already employed or engaged in any business,” Perera said at an event where he was welcomed by its staff and well-wishers as the 26th Chairman of the Sri Lanka Insurance Corporations (SLIC) on Thursday.The event was held at the SLIC head office at Vauxhall Street, Colombo.
He said that in the 1980s the insurance field was liberalized enabling private and foreign insurance companies to enter the market. Today there are 27 insurance companies in Sri Lanka of which SLIC enjoyed the number one position despite being a government entity.
“Government institutions are subject to strict rules and regulations. At times we are not in a position to buy equipment for the company due to those rules. Therefore, we cannot take decisions like other private or foreign insurance company. Despite these odds and challenges, we have been able to maintain the number one positions in the insurance field,” .Perera said,
He also said that to penetrate into the youth market, new innovation and the latest technology has to be used. This is especially so with regard to health insurance policies because such cover enables youth to work without fear for their lives.
“This being a competitive industry we have to embrace new technology together with innovations. If not we cannot exist in the market because the technology will overrun the industry. This happened to companies like Kodak and Polaroid in the photography industry where digital technology took over.”
Sri Lanka Insurance has all the potential of being the largest insurance company with a highly skilled work force and with an excellent brand image, he added.
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Sajith warns country is being dragged into authoritarian rule
Opposition and SJB Leader Sajith Premadasa has alleged that the current government is attempting to suppress freedom of expression and media freedom to lead the country towards authoritarian rule.
In a video message on Thursday (25), Premadasa said that in a democratic country, the four main pillars safeguarding democracy are the legislature, the executive, the judiciary, and the independent media, but, at present, the government is using the police to violate both the democratic rights of the people and the rights of police officers themselves.
He said that the government is working to establish a police state that deprives citizens of their right to access truthful information.
“For democracy to be protected, media freedom must be safeguarded, and space must be given to independent media. Instead, the government is interfering with the independent media process, using the police to suppress and intimidate independent media,” he said.
He noted that even when independent media present their views based on reason, facts, and evidence, the government attempts to suppress them. Such actions, he said, amount to turning a democratic country into a police state. “Do not suppress the voice of the silent majority, the independent media,” he urged.
Premadasa emphasised that independent media represent the voice of the silent majority in the country and must not be suppressed.
“Media repression is a step towards authoritarian rule, and the people did not give their mandate to create an authoritarian regime or a police state. If the government attempts to abolish democratic rights, the Samagi Jana Balawegaya will stand as the opposition against it,” he said.
The Opposition Leader further alleged that the government was interfering with police independence, stating, “Political interference has undermined the independence of the police, making it impossible for them to serve impartially. Suppressing freedom of expression is an attempt to lead the country towards authoritarian rule.”
Premadasa pointed out that the media has the right to reveal the truth, and interfering with that right is a violation of the rights of 22 million citizens.
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Wholesale mafia blamed for unusually high vegetable prices
Vegetable prices at the Peliyagoda Manning Wholesale Market surged to unusually high levels yesterday (26), raising concerns among consumers as the festive season drives up demand. The situation is expected to persist over the next few days, a spokesman for the Manning Market told The Island.
He said a sharp increase in the number of buyers visiting the wholesale market, ahead of upcoming festivities, had resulted in a sudden spike in demand, prompting wholesale traders to raise prices significantly. The price hikes have affected a wide range of commonly consumed vegetables, placing additional pressure on household budgets.
According to market sources, the wholesale price of beans climbed to Rs. 1,100 per kilogram, while capsicum soared to Rs. 2,000 per kilogram. Green chillies were selling at around Rs. 1,600 per kilogram. Prices of other vegetables, including beetroot, brinjal (eggplant), tomatoes, bitter gourd, snake gourd and knolkhol, also recorded unusually high increases.
The spokesman alleged that despite the steep rise in prices, vegetable farmers have not benefited from the increases. Instead, he claimed that a group of traders, who effectively control operations at the wholesale market, are arbitrarily inflating prices to maximise profits.
He warned that if the relevant authorities fail to intervene promptly to curb these practices, vegetable prices could escalate further during the peak festive period. Such a trend, he said, would disproportionately benefit a small group of middlemen while leaving consumers to bear the brunt of higher food costs.
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