Sanasa Life suspension extended through January following IRCSL directive

Sanasa Life Insurance Company PLC has officially informed the Colombo Stock Exchange (CSE) that its registration suspension has been extended by the Insurance Regulatory Commission of Sri Lanka (IRCSL). 

In a formal disclosure signed by Chief Executive Officer Nuwanpriya Gunawardena, the company revealed that the regulator has moved to extend the prohibition on carrying out long-term insurance business from December 27, 2025, to January 30, 2026. The decision was communicated via a directive from the IRCSL dated December 24, 2025, which cites multiple violations under Section 18 of the Regulation of Insurance Industry Act, No. 43 of 2000.

The regulatory intervention follows a series of notices issued earlier in the month, specifically on December 8 and 12, marking a significant escalation in the watchdog’s oversight of the provider. The IRCSL’s decision to extend the suspension is rooted in several critical compliance failures, specifically referencing Section 18 (1) (d), (f), (g), and (h) of the Act. These sections generally empower the Commission to act if an insurer fails to maintain mandatory solvency margins, submits false or misleading information, or if the continuation of its business is deemed detrimental to the interests of policyholders.

The background to this crisis stems from the initial suspension earlier in December, when the IRCSL flagged severe concerns regarding data integrity and the company’s failure to meet minimum capital adequacy requirements. 

While the company has previously highlighted its grassroots resilience, the regulator’s continued action suggests that material financial discrepancies have yet to be resolved to the Commission’s satisfaction. This extension ensures that Sanasa Life remains legally barred from issuing new long-term insurance policies or modifying existing ones, effectively freezing its primary revenue-generating operations until it satisfies the state’s stringent solvency and transparency conditions.