Tuesday Feb 17, 2026
Tuesday Feb 17, 2026
Friday, 13 February 2026 00:21 - - {{hitsCtrl.values.hits}}
Sanasa Life Insurance Company PLC yesterday said it will raise over Rs. 522 million via a Rights Issue, on top of a proposed Rs. 500 million debenture issue last month.
The Rights involve 52.2 ordinary shares at Rs. 10 each to raise capital as part of a broader capital enhancement plan to restore its solvency position.
The offer, approved by the Board on Tuesday (10), will be made to shareholders on the basis of one new share for every two shares held as at 10 February 2026. The new shares will rank pari passu with existing shares upon issue.
The company’s existing stated capital stands at Rs. 1.04 billion by 104,534,556 ordinary shares. Upon full subscription, stated capital will increase to nearly Rs. 1.57 billion.
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 3 March 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.
An Extraordinary General Meeting to approve the basis of allocation of shares under the Rights Issue will be held on 25 February in Colombo. The acceptance period for the offer will run from 26 February to 28 February.
The Securities and Exchange Commission of Sri Lanka (SEC) has granted approval for the Rights Issue under Section 81 of the SEC Act on 27 January.
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%.
