State insurer up for sale

Asia Pacific

The Sri Lankan government is looking for a foreign strategic investor to take a 100% stake in the state owned Sri Lankan Insurance Corporation (SLIC) which accounts for nearly half of premium income generated by the country’s nonlife market. By way of another incentive for potential investors, SLIC has a 30% stake in the Commercial Bank of Ceylon, one of the most profitable banks in the country. The government, under pressure to reduce a budget deficit which is currently running at 10.8% of GDP, has promised to open up the insurance, energy and telecoms sectors to foreign investors. The sale of SLIC is being handled by PricewaterhouseCoopers. Bids will open in July and a short list of investors drawn up by the end of August.