‘Weaving the Dreams of our Nation’:

Ceylinco Insurance to promote economic development

The company’s theme of the 2010 Annual Report which was released early last year was ‘In Sri Lanka we Believe.’ It was a theme which was to inspire the company during 2011 because it expressed not only the company’s sincerest belief but also the people’s confidence that after a bitter 30 year war which sapped the country’s national strength and stifled its economic growth the country was poised to get on the fast track towards rapid economic growth .

As stated in the book “When the going gets tough, the tough get going.” which was written by the Chairman of Ceylinco Insurance J.Godwin Perera and which was launched last year ‘ To the people of Sri Lanka 2010 was not merely the advent of a new year. It was the dawn of a new era.’ Therefore in 2011 the company was determined to align its corporate strength to every effort by the Government to promote economic development and social welfare to reach down to grass roots level.

As stated in the company’s current Annual Report “viewed against the background of the turbulent global macro economic scenario of 2011 our country’s economic performance for 2011 was to say the least exceptional. While the world economy grew by 4.0 % and the advanced economies grew by a dismal 1.6 % Sri Lanka achieved an impressive 8.3 % growth rate. The services sector grew by 8.3 % over the previous year to reach 58 %.

Furthermore inflation was pegged down to 4.9% and unemployment to 4.3%.

The tourism sector increased earnings by 47 % to reach US$ 736 million. Showing confidence in the potential for tourism up-market hotel chains like Shangri La and Hyatt are entering the Sri Lanka market.

The Report further mentions that infrastructure development projects were on schedule and that mention must be made of the completion of Stage 1 of Norochcholai Coal Power Plant and the commissioning of the Upper Kotmale Hydro Power Plant. Furthermore the completion of the Southern Highway certainly gave a new dimension to infra structure projects in a resurgent Sri Lanka.

This year the company has decided on a logical follow-up to the previous theme and decided that it will be ‘Weaving the Dreams of our Nation’. Living up to this theme Ceylinco Insurance is determined to continue to play a very positive in fact a pivotal role in promoting economic development. As described in the Annual report “Economic development requires that existing business enterprises need to expand and diversify. Very often it means the use of hi-tec inputs by which much needed value addition can be achieved to make products and services more competitive in the local and more importantly in the global markets. But there is often an element of risk in business expansion, diversification or innovation.

By offering the safety -net of risk transfer Ceylinco Insurance creates the right conditions for expansion, diversification and innovation without the need for business enterprises to set aside significant capital in the form of liquid contingency funds. This safety - net also encourages new entrepreneurs to start new industries.

At the same time any type of business , specially those with a high investment ratio must have long term sustainability. This is where the risk management instruments of Ceylinco Insurance as reflected by its premiums and policies offers indicators of risk levels. Business enterprises can then take steps to reduce their risk profile.

They can for instance take steps to reduce their exposure to possible natural disasters or to ensure a hazard free work environment or to reduce or even avoid using pollution causing technology. The other very significant contribution which Ceylinco Insurance has been making and will continue to make is in the area of consumption.

An analysis will reveal that over 70 % of GDP constitutes Consumption. It therefore becomes one of the main drivers of the economy. However individuals and families always face the risk of facing an unfortunate and unforeseen situation as a result of which they will be unable to sustain their consumption patterns.

This can happen because of unexpected, heavy expenses incurred due to accidents or illnesses. Or severe losses due to burglary fire, natural disasters like floods or earthquakes. More sadly the consumption pattern of a family can be completely reversed due to the untimely death or permanent total disablement of a bread winner. But these down sides in life can be mitigated through the protection offered by a wide portfolio of Ceylinco insurance products amongst which are life insurance, motor insurance, household insurance, traders insurance, health insurance, fire insurance, marine insurance and many other personal insurance policies.

This type of financial protection enables individuals and families to enjoy uninterrupted consumption patterns which will have a positive effect on the economy. Equally important is the reduction of psychological and emotional stress .

Another role which Ceylinco Insurance plays and will continue to play is that it complements banks and other financial institutions by facilitating credit transactions regarding purchase of land, vehicles, houses, plant and machinery.

These are all contributors to economic growth. Finally there is the very high investment capacity of Ceylinco Insurance. As an institutional investor this company has played a vital role in economic growth by providing capital for infrastructural and other long term projects.

With its wide portfolio of insurance products capable of meeting the insurance needs of individuals and businesses ranging from proprietorships to conglomerates and having the most extensive island wide branch network backed by trained and dedicated professionals, Ceylinco Insuranc PLC is in the best position in the industry to fulfill its role in “Weaving the dreams of the Nation”.