Statement of response from Ceylinco Insurance PLC

Tuesday, 7 April 2015 00:42 -     - {{hitsCtrl.values.hits}}

Ceylinco Insurance Plc yesterday issued the following response to an article titled “GRI keeping close tabs on CIESOT fund after court decision” published in the Daily FT issue of 1 April 2015 (See The management of Ceylinco Insurance PLC notes with interest the about face that is evident in a media statement by Global Rubber Industries (GRI) which holds a 22.25% stake in the company. In it, GRI waxes at length on the benefits that should accrue to employees from the shares held in trust for them by CIESOT – the Ceylinco Insurance Employee Share Ownership Trust. This concern for the welfare of our employees by a major shareholder is a positive sign, especially in the context of the recent efforts made by GRI and others to take control of these very shares. In fact, it was the company and the employees’ union that resisted efforts to take over the shares in the courts of law. Ceylinco Insurance PLC also notes the statement made by GRI that it does not want the insurance company to surrender its position as the market leader to its competitors. GRI may rest assured that the management has no intention of relinquishing its position as the market leader, a position it has held for the past 11 years, with robust results achieved in the year 2014 in the face of distractions such as the attempts to seize control of the company through the shares held in trust for its employees. We are happy that GRI feels its global connections can help further the business development of Ceylinco Insurance, but regret to note that a perusal of the accounts of GRI shows the non-compliance of its accounts with Sri Lanka Accounting Standards and the extent to which its financial performance is dependent on the 22.25% of Ceylinco Insurance profits it shows on its books. Nevertheless, GRI ought to be aware that several matters contained in the said publication appearing in the Daily Financial Times newspaper on 1April 2015 are matters under consideration before courts and thus Ceylinco Insurance refrains from commenting on the same,as they are sub judice. Finally we state that, the recent conduct of GRI seriously questions the bona fides of the concerns raised in the said publication and further note that the said purported concerns are fuelled by hidden,extraneous considerations to advance a hidden agenda.