Local, foreign insurers to get equal opportunities with new law

law

Aug 03, 2016 (LBO) – Sri Lanka’s cabinet of ministers has approved a proposal to finalize the draft bill on Regulation of Insurance Industry Act by adding amendments that provide a level playing field for foreign and local insurance companies.

In 2013, the cabinet granted approval to make several amendments to the Regulation of Insurance Industry Act including changing the Insurance Board of Sri Lanka into Insurance Regulatory Commission of Sri Lanka.

Accordingly, the amended bill has already been prepared by the legal draftsman which will be presented in Parliament after obtaining the clearance of the Attorney General.

The cabinet proposal forwarded by Finance Minister however has instructed the legal draftsman to finalize the bill by adding amendments as recommended by the Insurance Board that provides a level playing field for foreign and local insurance companies.

The Insurance Board of Sri Lanka was established by the Regulation of Insurance Industry Act No. 43 of 2000 for facilitating the development, supervision and regulation of the insurance industry in Sri Lanka.

The regulation was subsequently amended by acts No. 27 of 2007 and No. 03 of 2011.