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Friday November 13th, 2026

Sri Lanka Insurance Corp Life assigned ‘CCC+’ IFS and ‘A+(lka)’ by Fitch

ECONOMYNEXT – Sri Lanka Insurance Corporation Life Limited (SLIC Life) has been assigned a ‘CCC+’ Insurer Financial Strength (IFS) rating and an ‘A+(lka)’ national IFS rating by Fitch, with a stable outlook.

“The ratings reflect SLIC Life’s ‘Favourable’ company profile, and high investment and asset risks, which are driven by exposure to sovereign-related investments,” Fitch said.

The ratings also take into consideration the life insurer’s satisfactory regulatory capital position, which compares favourably with other domestic life insurers in the country, it said.

The full statement is reproduced below:

Fitch Assigns Sri Lanka Insurance Corp Life ‘CCC+’ IFS and ‘A+(lka)’ National IFS Ratings

Fitch Ratings – Sydney/Colombo – 28 Feb 2025: Fitch Ratings has assigned Sri Lanka Insurance Corporation Life Limited (SLIC Life) a ‘CCC+’ Insurer Financial Strength (IFS) Rating and an ‘A+(lka)’ National IFS Rating. The Outlook is Stable.

The ratings reflect SLIC Life’s ‘Favourable’ company profile, and high investment and asset risks, which are driven by exposure to sovereign-related investments. The ratings also take into consideration the life insurer’s satisfactory regulatory capital position, which compares favourably with other domestic life insurers in the country.

Key Rating Drivers

‘Favourable’ Company Profile: Fitch regards SLIC Life’s company profile as ‘Favourable’ because of a ‘Favourable’ business profile and ‘Neutral’ corporate governance compared with other insurers in Sri Lanka. SLIC Life’s business profile is supported by its long operating history, substantive business franchise and wide distribution network. SLIC Life was the third-largest life insurer in Sri Lanka with a gross premium market share of 13.8% at end-2023 (end-2022: 15.4%), based on the latest industry data.

Neutral Ownership; Life Focus: We consider ownership neutral to SLIC Life’s ratings. In February 2024, SLIC Life’s parent company, Sri Lanka Insurance Corporation Limited (SLIC) – ultimately owned by the government of Sri Lanka (Issuer Default Rating: CCC+) – completed the legal separation of its life and non-life segments by establishing two fully owned subsidiaries: SLIC Life and Sri Lanka Insurance Corporation General Limited (SLIC General).

This followed approval from the Insurance Regulatory Commission of Sri Lanka. Before the legal split, SLIC had been operating its life and non-life business separately since the regulator first mandated composite insurers to split their operations in 2015.

Improved Investment and Liquidity Risks: We believe that SLIC Life’s investment and liquidity risks, which are like those of other domestic insurers, have eased following improvement in the sovereign’s credit profile. Fitch upgraded Sri Lanka’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to ‘CCC+’ in December 2024 following the completion of its international sovereign bond restructuring and an improved outlook for economic indicators.

Risky asset exposure decreased after transferring large non-core equity investments from life insurance business to SLIC before the separation of the life and non-life businesses. The life insurer’s Fitch-calculated risky-asset ratio was high at 491% at end-1H24, indicating vulnerability to weakening in the sovereign’s credit quality. Its invested assets were mainly government securities, corporate debt, equity securities and term deposits. SLIC Life has limited exposure to foreign-currency obligations, and foreign-currency assets are about 1% of total investments.

Satisfactory Regulatory Capital Position: SLIC Life’s RBC ratio was 646% at end-1H24 (2023: 425% for SLIC’s life segment), well above the regulatory minimum of 120% and compares favourably with that of other life insurers in the country. The increase in the RBC ratio was driven by the decrease in concentration and market risk charges in 1H24. SLIC Life’s Fitch Prism Global score was ‘Somewhat Weak’ at end-1H24 due to its high investment risks.

Premium Growth Pick-Up: Gross written premium growth rebounded in 1H24 (February-June 2024), rising by 18%, led by a 34% increase in new business premiums and a 19% rise in renewal premiums. This followed sluggish growth in 2022-2023, when gross premiums fell by 5% in 2022 and rose modestly by 1% in 2023. Before the legal separation, the company’s life segment reported an average ROE of 18% over 2021-2023, supported by investment income during this period, while its pretax ROA averaged 2%.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

IFS Rating

– Significant weakening in SLIC Life’s business profile, for instance, due to a weaker franchise, operating scale or business risk profile;

– Rising investment and asset risks, including a downgrade of the ratings of financial institutions or the sovereign, which account for a large share of SLIC Life’s investment portfolio.

National IFS Rating

– Prolonged weakness in financial performance;

– A deterioration in the RBC ratio to below 300% for a sustained period;

– Rising investment and asset risks, including a downgrade of the ratings of financial institutions or the sovereign, which account for a large share of SLIC Life’s investment portfolio.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

IFS Rating and National IFS Rating

– Further improvement in the company profile, including a greater operating scale and a stronger market positioning;

– Significant reduction in SLIC Life’s investment and asset risks for a sustained period.

Date of Relevant Committee

18 February 2025

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

The highest level of ESG credit relevance is a score of ‘3’, unless otherwise disclosed in this section. A score of ‘3’ means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch’s ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch’s ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores (Colombo/Feb28/2025)

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

Read more
Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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