Sanasa Life licence suspension lifted after capital restoration

Wednesday, 8 July 2026 00:00 - - {{hitsCtrl.values.hits}}

Regulator IRCSL removes suspension with effect from 6 July, subject to the company fulfilling specified conditions
Follows successful Rs.500 m Tier II subordinated debenture issue

The Insurance Regulatory Commission of Sri Lanka (IRCSL) has lifted the suspension on the registration of Sanasa Life Insurance Company PLC with effect from 6 July, allowing the insurer to resume operations subject to the fulfilment of certain conditions imposed by the regulator.

Announcing the development yesterday, Sanasa Life said the IRCSL had informed the company by letter dated 6 July that the suspension, first imposed in December 2025, had been removed with immediate effect, although the decision remains conditional on the company meeting specified regulatory requirements which were not disclosed.

Last week, the company announced that it had successfully completed a fully subscribed Rs. 500 million private placement of Tier II subordinated debentures to strengthen its capital base and restore compliance with regulatory solvency requirements.

Sanasa Life said at the time that the proceeds would raise its Capital Adequacy Ratio to 141% if treated as cash held in escrow, or 160% if invested in Government securities, comfortably exceeding the IRCSL’s minimum regulatory requirement of 120%. The company had also formally requested the regulator to lift the suspension on its insurance licence after completing the capital raising exercise, while noting that the IRCSL had sought additional information before making its determination.

The debenture issue was structured in accordance with conditions stipulated by the Securities and Exchange Commission of Sri Lanka and was intended to restore the insurer’s capital position under the Risk-Based Capital (Solvency Margin) Rules.