As enacted

Contents

Regulation of Insurance Industry Act 2000 · As enacted · Part II · Registration of Insurers

25. General provisions relating to Reserve and Fund being maintained by an insurer

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Not less than twenty per centum of the assets of the technical reserve being maintained for a general insurance business under section 24 and not less than thirty per centum of the assets for the Long Term Insurance Fund being maintained under subsection (1) of section 38, shall be in the form of Government Securities. The balance assets shall be in the form of such other investments as shall be determined by the Board.

(2)

The Board shall have the power, where it considers any investment of any assets in any reserve or Fund referred to in subsection (1) of this section is unsuitable, to issue directions for the disposal of such investment within such time as may be specified in such directions.

(3)

Assets of a reserve or Fund being maintained by an insurer under this Act, and all other assets of such insurer shall be kept in Sri Lanka, unless otherwise permitted by the

Board on application being made in that behalf by an insurer.

Guidelines for the granting of permission by the Board shall be as prescribed.

Read on from s 26

Part III