Lower Risk

Sept 18, 2009 (LBO) – International underwriters in London have further lowered the war risk rating for Sri Lanka following the defeat by government forces of Tamil Tigers, and appear to have excluded Colombo port, a senior official said. The London market’s Joint Cargo Committee (JCC) has lowered the risk rating from 3.0 to 2.9 – a further step – this month, Udayasri Kariyawasam, chairman of the Insurance Board of Sri Lanka, the regulator, said in a statement.

In June, the rating was reduced from 3.4 to 3.0, in effect changing the status from ‘severe’ to ‘high’, soon after government forces defeated Tamil Tiger rebels, ending 30 years of conflict.

The lower risk rating is expected to pay the way for reductions in insurance premiums on sea and air cargo.

Kariyawasam said while the entire country risk (ground) remains at the ‘High’ category, the JCC has identified the risk with regard to marine, only in the waters 12 nm off the north and east coast, including Point Pedro Port in the northern Jaffna peninsula and the eastern port of Trincomalee as ‘High’.

“It appears that they have excluded all other ports in the areas other than those identified above,” he said.

The scale consists of five risk levels: ‘Sever