SUSPENSION OF REGISTRATION OF ARCADIA INSURANCE BROKERS (PVT) LTD. AND COLOMBO INSURANCE BROKERS (PVT) LTD. UNDER SECTION 84 (1)(d) OF THE REGULATION OF INSURANCE INDUSTRY ACT NO. 43 OF 2000

The Insurance Board of Sri Lanka (IBSL) has suspended the registration of Arcadia Insurance Brokers (Pvt) Ltd. and Colombo Insurance Brokers (Pvt) Ltd. to carry on Long Term and General Insurance Business in terms of Section 84 (1) (d) of the Regulation of Insurance Industry Act, 43 of 2000, for a period not exceeding three weeks with effect from 24th December 2008 for having being warned in writing by the IBSL on three separate occasions previously and for non-submission of quarterly returns for the quarter ended 30th September 2008 to date. Until the IBSL informs otherwise, the suspension imposed remains unchanged till 4.30 p.m. of 14th January 2009.

Accordingly Arcadia Insurance Brokers (Pvt) Ltd. and Colombo Insurance Brokers (Pvt) Ltd. are prohibited from issuing any new insurance policies in respect of Long Term and General Insurance Business, through insurance companies, until the suspension is removed. A renewal of an insurance policy in respect of General Insurance Business is considered as a new contract/new insurance policy.

However, Arcadia Insurance Brokers (Pvt) Ltd. and Colombo Insurance Brokers (Pvt) Ltd. are required to ensure to fulfil its obligations under policies already issued.