SLIC Treasury Bond claims are rejected as false, with Sri Lanka Insurance saying Rs. 6 billion was invested with approval, not Rs. 10 billion.
SLIC Treasury Bond allegations circulating through a media discussion and social media have been strongly rejected by Sri Lanka Insurance, which says the claims are false, misleading, and malicious.
Sri Lanka Insurance issued the clarification in response to statements made regarding its investment linked to the Treasury Bond auction held on April 9, 2026.
According to the company, the Public Debt Management Office under the Ministry of Finance, Planning and Economic Development issued a public notice on April 6, 2026, regarding the Treasury Bond auction scheduled for April 9.
Before participating in the auction, Sri Lanka Insurance and Sri Lanka Insurance Life obtained proper approval from their respective Investment Committees.
As a result, SLIC and SLIC Life firmly rejected claims that the investment had been made without official approval.
The company also dismissed allegations that Rs. 10 billion had been invested. It said the actual total investment made by SLIC and SLIC Life was approximately Rs. 6 billion.
Of that amount, Rs. 2 billion was invested in Treasury Bonds maturing on July 1, 2030. A further Rs. 3 billion was invested in Treasury Bonds maturing on June 15, 2034, while Rs. 1 billion was invested in Treasury Bonds maturing on July 1, 2037.
In deciding the interest rates for the Treasury Bond auction, the company said a detailed analysis had been carried out using secondary market trading rates prevailing before the auction for the relevant maturity periods.
SLIC and SLIC Life said they submitted bids at rates higher than those market rates with the aim of securing full allocation.
Accordingly, both Sri Lanka Insurance and Sri Lanka Insurance Life strongly rejected all claims that any irregularity or premeditated financial wrongdoing had taken place.
The company further stated that five Primary Dealer Institutions appointed by the Central Bank of Sri Lanka participated in the auction.
These institutions were Commercial Bank of Ceylon PLC, HNB Securities Ltd, First Capital Treasuries PLC, Capital Alliance PLC, and WealthTrust Securities PLC.
SLIC said that, in line with market practice, no fees were charged. Therefore, it described the transaction as a direct investment made to the government through the Treasury Bond auction.
As major institutional investors, Sri Lanka Insurance and Sri Lanka Insurance Life said they have consistently participated in Treasury Bond auctions through Primary Dealer Institutions in the past as well.
The company also rejected claims that SLIC or SLIC Life had made any investment at a rate of 9.75 percent.
It clarified that 9.75 percent refers to the coupon interest rate of the Treasury Bond maturing on July 1, 2030. The company said its investment in that bond had been made at effective rates higher than 9.75 percent.
SLIC and SLIC Life also rejected what they described as the false and malicious claim that a loss of Rs. 500 million had already occurred.
The company said the accounting principles for the relevant bonds are applied in accordance with Sri Lanka Financial Reporting Standard 9, known as SLFRS 9.
Sri Lanka Insurance and Sri Lanka Insurance Life said they remain committed to protecting the funds under their management and confirmed that required due diligence processes and internal approval procedures had been followed.
SLIC reiterated that the statements circulated regarding this investment are completely false, misleading, and malicious.
The company strongly rejected and condemned the allegations and said appropriate legal action would be taken against those responsible for spreading false statements that could damage public confidence in financial markets.
