A foreign broker previously fined for bribery has secured a state-backed deal in Sri Lanka without proper registration. This has ignited alarm over regulatory lapses, corruption, and future risks to the island’s public trust and economic recovery.
Sri Lanka’s insurance sector has plunged into controversy following the revelation that a foreign insurance broker, previously tied to major international bribery cases, has been awarded a lucrative contract by the National Insurance Trust Fund (NITF). The broker identified by industry insiders as Tysers reportedly secured this state-backed reinsurance deal without being registered with the Insurance Regulatory Commission of Sri Lanka (IRCSL), raising serious legal and ethical questions.
Tysers, a UK-based broker, has a checkered past involving millions of dollars in bribes paid to Ecuadorian government officials to win contracts allegations formally charged by the U.S. Department of Justice (DOJ). The firm admitted guilt and paid fines and forfeitures as part of a legal settlement. Despite this, the NITF appointed the company as its broker of record for a key contract, bypassing required registration under Sri Lankan law. This decision directly violates regulatory standards that mandate all brokers to be licensed locally a safeguard intended to uphold transparency, taxation, and sectoral integrity.
“This is a blatant regulatory breach,” a senior official from a local insurer remarked. “If a company with a documented history of corruption can bypass licensing, it sends a dangerous signal. It damages public trust and institutional integrity.”
The controversy deepens with allegations from whistleblowers who say NITF ignored Supreme Court orders and regulatory directives that prohibit contracts with unregistered entities. Past court rulings already upheld bans on foreign insurers operating without registration in Sri Lanka, setting clear precedent. The IRCSL and even the Attorney General’s office have reinforced these positions repeatedly, yet NITF continues to press forward with this contract.
Insiders allege that NITF not only approved Tysers’ bid but also processed premium payments despite clear legal violations. Additionally, the company is accused of concealing the real entity involved in the procurement, misrepresenting contractual arrangements, and potentially deceiving regulators. Critics say this may have been a deliberate ploy to sneak in a disqualified bidder under the radar.
“This reeks of state-enabled corruption,” said a transparency advocate. “Bribery schemes require both givers and receivers. The current administration’s zero-tolerance policy must also apply to foreign players not just local agents.”
Further intensifying the backlash, experts have expressed concerns that Tysers, now weakened by internal turmoil and the offloading of high-risk insurance sectors, is unfit to manage a sensitive national reinsurance portfolio. The broker’s operational limitations could jeopardize coverage for civil unrest, terrorism, and other high-risk incidents under the NITF’s purview. Legal experts warn that these reinsurance contracts could be rendered void by international panels, potentially leaving Sri Lanka exposed in the event of catastrophe.
A legal expert familiar with the matter said, “This isn’t just about one contract it’s about the rule of law. We need transparency, investigations, and strict adherence to procurement regulations if Sri Lanka is to restore credibility.”
In response, formal complaints have been filed with the Commission to Investigate Allegations of Bribery or Corruption, alongside criminal complaints against Tysers. Appeals have been submitted to both the President and Prime Minister, calling for immediate intervention. While the leadership has promised an investigation and reaffirmed its zero-tolerance stance on corruption, governance watchdogs remain skeptical.
The entire situation underscores the systemic vulnerabilities within Sri Lanka’s public procurement system. As the country works toward rebuilding institutional trust during its economic recovery, this episode serves as a sobering reminder: without accountability, even the most ambitious reforms can be undermined.
