Last modified on: 6/12/2010 11:21:01 AM Sri Lanka off war risk insurance list

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Last modified on: 6/12/2010 11:21:01 AM
Sri Lanka off war risk insurance list
After more than a year since the LTTE was defeated, ending a 30-year war, the Joint War Committee (JWC) of Lloyds of London has removed Sri Lanka from a war risk insurance list.
Since the war ended the government has been lobbying for the removal of Sri Lanka from the 'Hull War, Strikes, Terrorism and Related Perils Listed Areas'.
In a revision on March 11 this year, the JWC retained Sri Lanka in the war risk area list, the second Asian country with Pakistan. In its latest review dated June 9, 2010, the committee has deleted Sri Lanka from this list, leaving Pakistan to stand alone as a war risk area in Asia.
To be listed on 'Hull War, Strikes, Terrorism and Related Perils Listed Areas' meant that shipping lines had to pay higher premiums on insurance policies, which could deter some lines making calls at the destination port. The government has been lobbying since the war ended to have Sri Lanka's war risk rating lifted by international insurance underwriters through the joint efforts of the Ministry of Defence, Sri Lanka Ports Authority and the Insurance Board of Sri Lanka.
External Affairs Minister Prof G. L. Peiris led a delegation to Lloyds to lobby for the removal of Sri Lanka from the war risk list. Officials said they even invited Lloyds' officials to visit the Port of Colombo.
A top official of the Sri Lanka Ports Authority welcomed the deletion of Sri Lanka from the list.
"Shipping lines calling on Sri Lanka since the war ended did not have to pay high premiums because the risk rating was reduced by Lloyds. But some lines could not negotiate with their insurers and were hit by the high premiums," the official said. He did not want to be named until the official statement from the authority was prepared.
A senior executive in the shipping industry, Jayantha Rathnayake, Cargoserv Shipping Managing Director, said the same thing. "It all depended on what kind of relationship the shipping line had with their insurers. Now that Sri Lanka has been removed from the list, Sri Lanka could attract more shipping lines," he said.
"This could also be seen as recognition by the West that Sri Lanka is a safe and peaceful place. It would not only attract more shipping, but tourism and investments too would be given added confidence to make Sri Lanka their Destination of choice. This is indeed good news," Rathnayake said.