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Monday June 3rd, 2024

Sri Lanka’s HNB Assurance eyes 15-pct premium growth in 2019

ECONOMYNEXT – Sri Lanka’s HNB Assurance is expecting planning write business of 15 percent in the year to March 2019 around 9.5 billion rupees, with restrictions on vehicle imports relaxed, though economic conditions were weak, officials said.

Chief Executive Deepthi Lokuarachchi said the firm expected 15-16 percent premium growth in 2019 with first quarter revenue increase outstripping industry growth.

"Market conditions are hard at the moment with disposable incomes coming down," Lokuarachchi said.

"Both our general and life businesses have grown faster than the market rate of growth in the first quarter."

"Our life Insurance company has recorded 17 percent revenue growth. General business had recorded 11 percent whereas the market rate is much lower than that."

According to Insurance Commission of Sri Lanka data gross premium growth in life was 9.64-pct in March quarter and general insurance was 2.79-pct.

Gross written premium grew 14 percent to 2.49 billion rupees in the March quarter but profits fell to 132 million rupees from 681 million rupees (earnings of 2.38 rupees per share) a year earlier, as benefits and claims spiked 45 percent to 937 million rupees.

Lokuarachchi said a higher volume  of life maturities contributed to the spike in claims and benefits.

Lokuarachchi said the HNB Assurance stayed out of a general price war in the insurance.

Some companies were writing business simply to fund expenses, without taking into account the actual risks, but HNB Assurance had avoided, he said.

Though HNB was not making large under-writing profits but was just about breaking even with a combined ratio of around 100.

Insurance involved selling a promise and people expected stability, he said.  He said a survey showed that HNB Assurance pricing was behind only one insurer.

Chairperson Rose Cooray said the HNB brand helped the firm. The firm also had a presence at some HNB branches.

Cooray said the relaxation of import credit restrictions by the government on motor vehicles would help general insurance sector in 2019.

Motor is 63 percent of the general insurance in Sri Lanka.

Sri Lanka was hit by monetary instability in 2018 as the central bank printed money to bring down rates, accommodate, maturing swaps and repay bonds, de-stabilizing a soft-peg with the US dollar analysts have said.

Car imports were restricted by the central bank, and banks bought bonds from fleeing foreign bond investors instead. Analysts have called for reform or abolition of the soft-peg which had generated instability in the country from shortly after independence from British rule.

But monetary instability has ended in 2019 and interest rates are coming down.

Lokuarachchi said insurers were also hit by higher tax rates under a new inland revenue law. (Colombo/July20/2019)
 

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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