Tuesday Jan 13, 2026
Tuesday Jan 13, 2026
Tuesday, 13 January 2026 02:06 - - {{hitsCtrl.values.hits}}
Sanasa Life Insurance Company PLC yesterday said its Board has approved the issuance of Tier II debentures amounting to Rs. 500 million, subject to regulatory approvals.
The Board resolution approving the issue was passed on 8 January.
The proposed issue will comprise 5 million unlisted, rated, unsecured, subordinated, cumulative, and redeemable Tier II debentures, each with a par value of Rs. 100, raising a maximum amount of Rs. 500 million.
The debentures will carry a tenure of five years and offer an interest rate of 12.5% per annum, payable annually, subject to a lock-in clause linked to the company’s capital adequacy requirements.
Sanasa Life said payments of interest and/or principal, including at maturity, will be restricted if such payments result in the company’s Capital Adequacy Ratio (CAR) falling below, or remaining below, the minimum solvency margin stipulated under Rule 3 of the Solvency Margin (Risk Based Capital) Rules 2015.
Redemption of principal will be made as a bullet payment at maturity, subject to the lock-in clause. In the event any principal remains outstanding after maturity, repayment will be made, to the extent possible, on a quarterly basis until fully settled.
The debentures will be cumulative, with unpaid interest accumulating and payable in full or on a pro-rata basis, subject to the lock-in clause, until all dues are settled.
In the event of default, interest on arrears of interest will be calculated based on the prevailing National Savings Bank savings rate, subject to a minimum of 2% per annum and a maximum of 3.25% per annum, while default interest on arrears of principal will be calculated at the prevailing Average Weighted Prime Lending Rate (AWPLR) plus 0.5% per annum.
The company said the debentures will be rated by Lanka Rating Agency Ltd., with the rating for the proposed issue to be announced once available.
In December 2025, the Insurance Regulatory Commission of Sri Lanka (IRCSL) extended the suspension imposed on Sanasa Life Insurance Co., PLC to engage in long-term insurance activities from 27 December 2025 to 30 January 2026.
The registration of Sanasa Life Insurance had previously been suspended from 5 December 2025 to 26 December 2025, the company said, but did not provide further details on the grounds for the extension.
The company reported a net asset value per share of Rs. 22.61 as at end-September 2025. Senthilverl Holdings was the top shareholder as of that date at 19.10%, followed by Sanasa Federation with 10.50%.
