ECONOMYNEXT – State-run Sri Lanka Insurance has posted a profit of 19.5 billion rupees in the first eight months of 2023, up from 12.5 billion rupees for the full 2022 year, a Finance Ministry report said.
In the first eight months of 2022, the firm posted a profit 9.4 billion rupees.
“This was mainly due to the increase in income from investments because of the increased in return on investments in the market..,” the report said despite revenues falling 5 percent to 42.6 billion rupees in the first 8 months, from 44.8 billion, a year ago.
From the second half of 2022 yields on government securities, a key investment asset of the Sri Lanka Insurance climbed steeply, as money printed to mis-target rates was halted by the central bank.
SLIC assets had risen to 301.6 billion rupees by end August 2023, from 273.7 billion at the end of 2022.
SLIC whose privatization was reversed by a court order is now slated to be re-privatized under a competitive bidding process.
The higher asset value of the life fund generally belongs to the beneficiaries, but the general fund assets would boost net assets, potentially giving more cashflows to the state from a sale or a pre-sale dividend. (Colombo/Nov20/2023 – Corrected headline up to August)