SLECIC increases income to Rs. 177 million

TURNOVER: Sri Lanka Export Credit Insurance Corporation SLECIC income showed a growth of 16% over the previous year from Rs. 152.62 million to Rs. 177 million as compared to an increase of 74% in the previous year from Rs. 87.72 to Rs. 152.52 million.

The increase in premium income in 2004 was due to the signing of the Whole Turnover Credit Guarantees with Hatton National Bank and Seylan Bank.

Shipments covered under insurance showed a growth of 34% over the previous year from Rs. 8,137 million to Rs. 10,916 million as compared to an increase of 35% in the previous year from Rs. 6,015 to Rs. 8,137 million, Chairman SLECIC C. A. N. Perera said.

Payment of claims showed a decline of 73% over the previous year from Rs. 64.97 million to Rs. 17.36 million as compared to an increase of 167% in the previous year from Rs. 24.26 to Rs. 64.07 million.

The increase in recoveries made during 2005 is due to the high payment of claims in 2004 and mitigate this payment to an extent.

SLECIC hopes to open offices in Kandy, Hambantota and Kurunegala this year. SLECIC also intends to launch two new products during the current year which will be aimed at high value addition with higher profit margins to exporters.

The expansion of the existing product "Apara" will be another area in which SLECIC will attempt to promote the export of labour to new and more attractive emerging labour markets.

This product will be expanded to be available to a wider cross section of the populace through the SLECIC windows that are being planned. The Sri Lanka Export Credit Insurance Corporation (SLECIC) commenced operations in February 1979 now comes under the purview of the Ministry of Enterprise Development and Investment Promotion.