The Insurance Regulatory Commission of Sri Lanka (IRCSL) has reinstated the registration of Sanasa Life Insurance Company PLC, allowing the insurer to resume its long-term insurance business with effect from 6 July 2026, following a suspension that lasted approximately seven months. The decision is subject to the company fulfilling a number of conditions imposed by the regulator.

The suspension, first imposed in December 2025, stemmed from regulatory concerns relating to solvency, compliance with statutory requirements, and the accuracy of information submitted to the regulator. During the suspension period, the company was prohibited from issuing new long-term insurance policies or making amendments to existing policies, although it remained responsible for meeting its obligations to existing policyholders.

The IRCSL had extended the suspension several times while monitoring the company’s efforts to address regulatory deficiencies. The latest decision signals that Sanasa Life has made sufficient progress for the regulator to permit the resumption of operations, albeit under continued regulatory oversight and subject to compliance with specified conditions.

The reinstatement is expected to provide reassurance to policyholders, employees and other stakeholders, while enabling the insurer to rebuild its business operations in Sri Lanka’s competitive life insurance market. The move also reflects the regulator’s commitment to balancing policyholder protection with the restoration of market confidence once insurers demonstrate progress in meeting prudential and governance requirements.

The development marks an important milestone for Sanasa Life as it seeks to strengthen its financial position, enhance governance standards and restore confidence among customers, distribution partners and investors. Industry observers note that continued compliance with regulatory requirements will remain essential as the company resumes normal business activities under the supervision of the IRCSL.