Risk Rating

Chandi Dharmaratne

June 11, 2010 (LBO) – London underwriters have removed Sri Lanka from the area listed for war risk insurance following lobbying by the island’s government that risks have been eliminated with the end of the ethnic war. A statement from the Joint War Committee in London said it recently reviewed the Listed Areas for Hull War, Strikes, Terrorism and Related Perils, last altered on March 11, 2010, and deleted Sri Lanka.

“The application of this list on individual contracts will be a matter for specific negotiation,” it said.

The rating is only a guideline published by the Joint War Committee of London underwriters.

The risk rating was reduced last year after the 30-year ethnic war ended in May with the defeat of Tamil separatists.

Since then the government has been lobbying insurers to remove the country as a listed area.

Lines which call Colombo regularly were not charged additional war risk insurance premiums in recent times.

But the government and shipping businesses were worried that the post-war economic revival could be affected if the island remained as a listed area for war risk.