COPE to SLIC: Reveal reasons for Maldives, Seychelles branch closures
Sri Lanka Insurance Corporation (SLIC) has been directed by the Committee on Public Enterprises (COPE) to submit a detailed report on its abrupt closure of Maldives and Seychelles branches set up during the previous regime.
COPE was of the view that the institution would incur unnecessary losses owing to the sudden closure of the branches recently.
In its latest report presented in parliament, COPE has ordered the SLIC to furnish statement of accounts indicating financial losses and expenditure incurred by the institution by opening, maintaining and closing the two branches.
It has also requested the SLIC to submit documents pertaining to the feasibility studies conducted before the opening of the branches and other relevant information in copies of letters sent by the Ministry of Finance which granted approval for the two SLIC branches.
SLIC officials informed COPE that it was decided to close down the said branches on a board decision as it was observed, subsequent to an inquiry on the functioning of the two branches, that they could not achieve the expected level of profits.
SLIC, which has been asked to submit the same report to the Auditor General, is yet to recover US$500,000 deposit since the closure of Maldives and Seychelles branches, a senior Treasury official revealed adding that the two branches were closed down due to inefficient management.
The institution has said that its Seychelles branch found it difficult to compete with well-established insurers in that country. The Maldives branch was shut due to stiff competition from Sri Lankaâ€™s Ceylinco Insurance.