Recorded Profits Of Rajapaksa-State Owned Insurance Giant Vanished

July 15, 2014

Confirming reports that have been circulating over the depleting finances of Sri Lanka Insurance Corporation, local media has reported the establishment has obtained a bank loan of Rs. 900 million during the first quarter of 2014.

It is reported that a loan of this nature has been borrowed by SLIC for the first time in its history – a reflection of sure signs of financial concerns within the institution.

However, SLIC that disclosed its financial performance of 2013 recently, boasted their stellar performance – a whopping 10% growth in profit before taxation of Rs. 6.354 billion. Reports that have quoted sources in the SLIC state that the need for the establishment to obtain a bank loan despite such a significant growth is of grave concern as only a meager amount off the recorded profit had been spent on SLIC expenses including compensation and payment of benefits.

The SLIC presently dominates the insurance market in Sri Lanka and the question remains of what became of the profits recorded in 2013 of this Rajapaksa-state managed insurance giant.