Sri Lanka Insurance Corporation outlook lifted to ‘positive’

June 5, 2009 (LBO) – RAM Ratings Lanka has lifted the outlook on Sri Lanka Insurance Corporation’s (SLIC) ‘AA-‘ claims paying ability to ‘positive’ from ‘stable’, following its return to state hands. “The positive outlook reflects the stronger level of financial flexibility that SLIC is expected to enjoy in the form of Government support,” RAM Ratings Lanka said.

“Going forward, RAM Ratings Lanka will closely monitor developments with regard to SLIC and changes that the state control may have on the Company in terms of strategic direction and operations.”

Sri Lanka’s Supreme Court ordered Distilleries Corporation of Sri Lanka to return SLIC to government on June 04, saying the deal was illegal and null and void from the beginning.

A positive outlook indicates that the underlying rating could be upgraded.

But the Distilleries could take out the profits earned during its stewardship of the firm, court said.