Sanasa Life to Raise Over Rs. 1 Bn for Capital Restoration 📈

• Sanasa Life Insurance Company PLC is set to raise approximately Rs. 522.67 million via a Rights Issue, following a previously proposed Rs. 500 million debenture issue, to address critical solvency requirements. • Rights Issue Details: • Basis: 1 new ordinary share for every 2 existing shares. • Price: Rs. 10 per share (52.2 million new shares). • Timeline: EGM on 25 February; acceptance period from 26–28 February 2026. • Capital Impact: Stated capital will increase from Rs. 1.04 Bn to nearly Rs. 1.57 Bn upon full subscription. • Solvency & Regulatory Status: • The Insurance Regulatory Commission of Sri Lanka (IRCSL) has suspended the firm's long-term insurance license until 3 March 2026 due to non-compliance with Risk Based Capital Rules. • Current CAR: 49.51% (following asset disposals). • Projected CAR: The Rights Issue is expected to lift the Capital Adequacy Ratio (CAR) to 100.64%, with further initiatives and the debenture issue projected to reach 164%. • Strategic Goal: The infusion aims to restore the company’s solvency margin and prevent the potential appointment of an administrator by the IRCSL. • Top Shareholders: Senthilverl Holdings (19.10%) and Sanasa Federation (10.50%) as of late 2025.