June 8, 2009 (LBO) – Sri Lanka’s insurance regulator said it had instructed insurers to negotiate with foreign counter parties to bring down re-insurance premiums as a war with separatist Tamil Tigers has ended. “After the complete defeat of the LTTE terror there is no war situation in Sri Lanka and the question of classifying Sri Lanka as a war risk area no longer arises,” the Insurance Board of Sri Lanka (IBSL) said in a statement.
The regulator said it had instructed all local insurers to start negotiations with foreign re-insurers to reduce premiums.
Lower re-insurance premiums will help reduce the cost of doing business and also save resources that go out of the country the regulator said.
IBSL says a reduction of aviation and marine insurance will help boost the country’s economic development.
Sri Lankan troops wiped out Tamil Tigers including its leader resistance last month in their last redoubt in the northeast of the island.