The Insurance Board of Sri Lanka has suspended the registration of Janashakthi Insurance PLC in respect of Long Term Insurance Business and General Insurance Business in terms of section 18 of the Regulation of Insurance Industry Act, No. 43 of 2000 for a period of three weeks with effect from 12 noon today (12th May 2009).

Accordingly, Janashakthi Insurance PLC is prohibited from issuing new insurance policies in respect of Long Term Insurance Business and General Insurance Business until the suspension is removed and informed in writing to Janashakthi Insurance PLC by the IBSL. A renewal of an insurance policy in respect of General Insurance Business is considered as a new contract/new insurance policy.

In terms of Section 18 (2) of the Regulation of Insurance Industry Act, No. 43 of 2000, Janashakthi Insurance PLC is required to fulfil its obligations for insurance policies already issued.

Until the IBSL informs otherwise, the suspension imposed hereby on Janashakthi Insurance PLC remains unchanged till 2nd June 2009.