Thursday Mar 19, 2026
Thursday Mar 19, 2026
Wednesday, 18 March 2026 00:06 - - {{hitsCtrl.values.hits}}
Sanasa Life Insurance Company PLC said it has completed its rights issue, raising Rs. 522,672,780 through the issuance of new ordinary shares.
The company said the rights issue was concluded on 13 March 2026 with the issuance of 52,267,278 shares at a price of Rs. 10 each. The newly issued shares rank pari passu in all respects with the company’s existing ordinary shares.
The capital raising follows an earlier disclosure made on 26 February 2026 regarding the rights issue.
The company also said shares not subscribed by existing shareholders were pooled and reallocated in accordance with board-approved procedures.
Priority was first given, on a proportionate basis, to existing shareholders who applied for additional shares. Remaining shares were then allocated to employees of the company. Any balance shares after these allocations were issued to third parties as approved by shareholders at the Extraordinary General Meeting held on 25 February 2026.
Sanasa Life said the proceeds, net of issue expenses, will be utilised to strengthen its solvency margin. The Rights Issue alone will not be sufficient to meet the required solvency threshold but forms part of a wider capital plan that includes a proposed Rs. 500 million debenture issue disclosed earlier to the Colombo Stock Exchange (CSE).
As at 31 December 2025, the company’s Capital Adequacy Ratio (CAR) stood at 43.66%. After certain asset disposals, the CAR improved to 49.51% prior to the Rights Issue. The Rs. 522.67 million equity infusion is expected to increase the CAR by 51.13%, bringing it to 100.64%, while further measures including the proposed debenture issue and other initiatives are projected to lift the CAR to 164%.
The Insurance Regulatory Commission of Sri Lanka (IRCSL) suspended the company’s registration to carry on long-term insurance business from 5 December 2025 citing, among others, non-compliance with solvency margin rules, failure to maintain sufficient approved assets to cover insurance liabilities, and submission of inaccurate quarterly information. The suspension has since been extended up to 5 May 2026.
The IRCSL has also indicated the possibility of appointing an administrator if the company fails to comply with Risk Based Capital Rules within the stipulated timeframe.
