News & market updates

Sri Lanka stocks closed flat as the ASPI fell 0.03% to 15,908.23 with turnover of Rs2.89bn driven by crossings and heavy bank trades, including a Rs1.1bn off-board Sampath Bank transaction. Notable movers included Ceylinco Insurance (-5.7%), Dipped Products (-3.0%), HNB and DFCC.

People’s Insurance PLC enhanced its "CALL & GO" facility, offering 24-hour roadside assistance that allows any motor insurance customer to continue a journey without waiting for an assessor if the vehicle is motorable. The motor product also includes towing, passenger medical cover, free airbag and hybrid battery cover, direct bank claim deposits and up to 80% no-claim bonus.

Hatton National Bank PLC (HNB.N0000) formalised a group-wide data-sharing agreement with its subsidiaries, including HNB Finance PLC, to strengthen data governance and ensure compliance with Sri Lanka's Personal Data Protection Act. The framework introduces advanced security measures, access controls and regular audits.

LOLC Holdings (LOLC.N0000) was named the SLIM Kantar People’s Financial Services Brand of the Year for the ninth consecutive year. The award, based on independent Kantar consumer research, underscores LOLC's strong customer connection, digital transformation and brand leadership across its finance and insurance businesses.

Hatton National Bank (HNB) and Singer Sri Lanka have launched an exclusive financing package for John Deere tractors offering preferential interest rates, a waived first-year credit card fee, discounted insurance and HNB Assurance life cover of Rs.4.5m (accidental) and Rs.600,000 (natural), plus Singer's warranty and service benefits.

Hatton National Bank and Singer Sri Lanka launched an exclusive financing package for John Deere tractors offering preferential interest rates, a free first-year credit card, discounted insurance and HNB Assurance life cover (Rs.4.5m accidental; Rs.600,000 natural). Singer will also provide free registration, a two-year/2,000-hour warranty, three free services, spare-parts discounts and 24/7 support.

Union Assurance (UAL.N0000) hosted its National Business Launch at Monarch Imperial, attended by senior management and over 500 agency members, recognising top advisers with regional awards (Moratuwa, Homagama, Malsiripura) and naming Chanaka Appuhamy 2024 Premier Champion who received a luxury vehicle.

Sri Lanka Insurance opened an Agency Business Development Centre (ABDC) in Katana (attached to the Negombo branch) on 6 March 2025 to expand its presence in the Upper Western region and improve service delivery for life and general insurance customers.

HNB Assurance PLC launched the 13th edition of ‘Liya Harasara,’ offering free life cover up to Rs.1 million for one year, daily childbirth hospitalisation benefits (capped three days/year) and free critical illness cover up to Rs.250,000, with offers running 1 March–30 April 2025.

Union Bank of Colombo (UBC.N0000) signed a strategic bancassurance agreement with HNB General Insurance to sell HNBGI’s motor and non-motor insurance products through Union Bank’s network. HNB General Insurance is a subsidiary of HNB Assurance and part of the HNB Group.

Sri Lanka's economy grew 5.0% in 2024 to Rs. 12,472 billion at constant prices, recovering from two years of contraction. Growth was led by industry (+11%, with a 19.4% surge in construction) and services (+2.4%, including a 31.4% rise in accommodation and food services); inflation stabilized and the rupee showed greater stability.

AIA Group reported FY2024 VONB up 18% to $4,712m and ANP up 14% to $8,606m, with OPAT $6,605m and Operating ROEV 14.9%. The board recommended a 10% increase in the final dividend and announced a $1.6bn share buy-back.

Co-operative Insurance Company PLC appointed Jayantha Amarasinghe as Chairman and Dayasumana Gamage as Vice Chairman. The board says the new leadership will push customer-centric growth, technology adoption and expansion of the captive business; major shareholder Wennapuwa MPCS holds 13.13%.

CBSL reported Manufacturing PMI at 56.8 and Services PMI at 56.5 for February 2025, indicating continued expansion in manufacturing and a slower but positive expansion in services. Growth was driven by food & beverage manufacturing and improvements across financial services, wholesale & retail, accommodation and education ahead of the festive season.

Seylan Bank launched bundle packages for vehicle importation, leasing and insurance offering competitive interest rates and exchange rates, partnering with LOLC Insurance. The service uses the bank's automated system and 170-branch network to handle letters of credit, import settlements and customs payments.

Sri Lanka's spot rupee closed at 295.50/296.00 per US dollar on Friday, slightly weaker than 295.40/45 on Wednesday; government bond yields were sharply down, with the 15.12.2026 around 8.66/77% and the 01.07.2028 about 10.10/17%.

The Treasury Bond auction was fully subscribed at Rs.210 billion, with the 15.12.29 (11.75% coupon) issued at a weighted average yield of 10.72%; secondary bond yields fell and the rupee appreciated marginally to Rs.295.40/295.50.

HNB Assurance reported 222 financial advisors qualified for the Million Dollar Round Table (MDRT) in 2024, including 23 Court of the Table and 8 Top of the Table qualifiers. Management said the milestone reflects its investment in advisor training and distribution channels.

Union Assurance (UAL.N0000) was named Best Life Insurance Company in Sri Lanka at the 5th Emerging Asia Insurance Conclave and Awards 2024. The company highlighted its Clicklife mobile app and digital/AI features, enabling direct policy purchases and a digital rewards ecosystem.

Amana Takaful PLC has partnered with BIMA Lanka to offer policyholders 24/7 unlimited telemedicine phone consultations and cashless OPD services nationwide.

The Insurance Association of Sri Lanka (IASL) is promoting investment insurance plans as a combined vehicle for wealth creation and protection to boost household financial stability, and is running educational initiatives and social media campaigns to raise awareness.

Fairfirst Insurance opened a new City Office at No. 55 H, Kumaran Ratnam Road, Colombo 2 to improve customer access and provide personalised insurance services.

Sri Lanka sold Rs210 billion of government bonds across 2029, 2032 and 2034 maturities, at average yields of 10.72% (15 Dec 2029), 11.40% (15 Dec 2032) and 11.50% (15 Sep 2034); settlement is March 17.

LIC's brand value rose 36% to $13.3bn, making it the world's 3rd strongest insurance brand (BSI 87.9); SBI Life's brand value rose 27% to $1.6bn, and combined Indian insurers' brand value grew 35% YoY to $14.9bn.

People’s Insurance PLC launched a comprehensive motor insurance policy for lady motorcycle riders, covering motorcycle damage, personal accident for rider and pillion (including children under 16), emergency medical expenses, critical illness and plastic surgery costs, plus Call & Go claims, alternative transport and lease-protection cover.

Ex-CBSL Governor Indrajith Coomaraswamy said ISB borrowings rose from USD 5bn to USD 15bn (2015–2019) largely due to switching instruments and liability management, and that the USD 4.5bn raised in 2019 was a reserve buffer to avert an earlier default.

Colombo market opened lower as the ASPI fell 0.71% (115 points) and the S&P SL20 dropped 0.69% amid low turnover of Rs. 824.6 million, with banks and blue-chip counters leading the decline.

Secondary bond market consolidated with yields trading sideways; a Rs.165.50 billion Treasury Bill auction is due today (91d Rs.30.50b; 182d Rs.55.00b; 364d Rs.80.00b). Selected bond maturities traded between ~8.78% and ~11.02%, call/repo ~7.98-7.99% and USD/LKR steady at ~295.45/295.53.

The Committee on Public Finance approved raising the annual levy on insurance companies to 0.2% of gross written premiums (from 0.125%) to fund IRCSL operations. The committee also criticised IRCSL’s handling of MBSL Insurance and pushed for reforms to streamline third‑party claims and channel reserves into development projects.

President Anura Kumara Dissanayake urged the Sri Lanka Insurance Corporation (SLIC) to increase its contribution to economic development through efficient, productive investments and stronger management to boost profitability and sustainability.