Distilleries group said in a stock exchange filing the Insurance Board of Sri Lanka had approved its application to set up an insurance subsidiary called Continental Insurance Lanka.
The Insurance Board said in a separate statement it had given registration to Continental Insurance Lanka to do General Insurance Business with effect from December 18, 2009.
Distilleries Company, the island's top alcohol producer, said sought regulator clearance to launch an insurance company with a start-up capital of 500 million rupees after losing control of a former state-owned insurance company.
Distilleries Company had said that it is willing to increase the investment provision to a billion rupees if necessary.
In 2003 Distilleries acquired state-owned Sri Lanka Insurance Corporation (SLIC) in a privatization deal.
But in June 2009 the Supreme Court reversed the sale, citing irregularities in the 6.0 billion rupee privatization deal.
Court ordered the government to repay 6.0 billion rupees originally paid by the private firm to gain control of SLIC.
Distilleries Company is a unit of the unlisted Stassens group controlled by tycoon Harry Jayawardene who also has large stakes in the listed Hatton National Bank, Commercial Bank and National Development Bank.
In June 2009, court said Milford Holdings, a special purpose company incorporated by the Distilleries group to purchase SLIC, could keep the profits earned during the time they ran the firm.
source - www.ibo.lk
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