May 13, 2009 (LBO) – Janashakthi Insurance said it was confident of getting a ‘sudden and unexpected’ suspension of its licence by the Insurance Board of Sri Lanka (IBSL) revoked soon. Janashakthi Insurance Managing Director Prakash Schaffter said that the public quoted company was totally transparent in its operations and has always fully complied with the regulations of the Colombo Stock Exchange and the IBSL.
“On 12 May 2009 we received an unforeseen directive from the IBSL stating that certain assets we have used to compute solvency margin since the year 2006 were not being accepted as admissible assets,” he said in a statement Wednesday.
“As a result the Janashakthi Insurance license to operate has been temporarily suspended.
“At this point in time we have appealed to the IBSL to revoke this sudden decision and are confident that it will respond positively to our request.”
Schaffter declined to give more details about the reason for the IBSL suspension but told LBO that it was not connected to property assets but other investment instruments.
The Insurance Board said in a statement that it suspended Janashakthi Insurance’s licence for three weeks from Tues