Legal Dispute Over NITF Reinsurance Tender Raises Concerns in Sri Lanka
- CNL Reporter
- February 18, 2025
- Political
- Anura Kumara Dissanayake
- 0 Comments
Strategic Insurance Brokers (SIB) has formally urged President and Minister of Finance, Anura Kumara Dissanayake, to reconsider the Cabinet’s decision regarding the National Insurance Trust Fund (NITF) tender for reinsurance coverage related to strikes, riots, civil commotion, and terrorism. Their request follows concerns over procedural and legal irregularities in the awarding of the tender.
A ruling by Colombo District Judge Sandun Vithana has effectively prohibited foreign entities that are not locally registered as insurance brokers from offering any insurance-related services within Sri Lanka. This decision was made in response to a legal complaint filed by SIB against JB Boda & Co., a Singapore-based firm, which was allegedly misrepresenting itself as a licensed insurance broker in the country.
Senior lawyers Romesh de Silva PC and Chanaka de Silva PC, representing SIB, argued in court that JB Boda had unlawfully participated in major insurance tenders, including those issued by state entities such as NITF.
The court issued an enjoining order against JB Boda, which was further reinforced by a recommendation from the Procurement Appeals Board. Consequently, the Cabinet of Ministers reversed its previous decision and awarded the tender to SIB, a firm duly registered with the Insurance Regulatory Commission of Sri Lanka (IRCSL) and recognized as the most responsive bidder.
