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Monday June 3rd, 2024

Sri Lanka Insurance develops travel cover for tourists after Easter bombing

ECONOMYNEXT- Sri Lanka’s state-owned Sri Lanka Insurance Corporation (SLIC) is awaiting approval from the government to issue travel insurance for foreign tourists in the aftermath of the Easter Sunday attack, a top official said.

"We have developed a plan to give both travel and hospitalization cover," Chief Executive Chandana Aluthgama said.

The SLIC policy will include a 100,000 US dollar medical cover.

"We have sent the proposal to the government for approval," he said.

Aluthgama said the planned premium will be a competitive, nominal fee, but the final price would depend on the government’s decision.

The National Insurance Trust Fund has meanwhile pledged to offer the Strike, Riot, Civil Commotion and Terrorist insurance cover for any tourists buying a travel policy from a Sri Lankan insurer.

NITF Chairman  Manjula de Silva said if the local insurers are able to provide a competitive travel policy, they may be able to compete with foreign firms even after the situation returns to normal.

The tourism industry is expecting a recovery over the next 12 months.

Travel insurance is usually offered by insurers in countries where the tourist originates from.

However, with the travel bans which were imposed on Sri Lanka after the Easter Sunday attack, many foreign insurance companies had refused to sell policies to tourists visiting Sri Lanka.

Travel advisories have now been relaxed to some degree by most major countries, downgrading to be cautious, instead of ‘do not travel’.

However, reinsurance costs remain high for Sri Lanka, pushing up travel policy premiums.

At Australian insurance aggregator comparethemarket.com, travel insurance covers to Sri Lanka start at 35 AUS dollars (24.4 US dollars) for 5-days, while for India, they start at 30 AUS dollars.

A Sri Lanka based insurance company which has already set up a travel insurance package meanwhile was selling its plan for 30 US dollars for a 5-day trip.

A company official said there was little demand for the cover. Tourist arrivals to Sri Lanka had fallen 70 percent in May.

Meanwhile, HNB Insurance Managing Director Deepthi Lokuarachchi said his firm does not currently have plans to set up a travel insurance policy for foreigners.

"If we set up such a policy, we have to bear higher costs for a new marketing strategy and have adequate funds for reinsuring," he said.

He said if he pays reinsurance deposits for 100,000 covers but only 10,000 tourists purchase the cover, he still has to bear the total cost.

"The tourist arrivals are low, and reinsurance costs are high," he said. "The market has to be explored thoroughly before a policy is created."

He suggested that the government could offer an insurance policy for interested tourists, to be bundled with visa fees.

 (Colombo/Jun12/2019)

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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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