by Our Correspondent in Colombo
A storm of controversy has erupted in Sri Lanka’s insurance and governance sectors following revelations that an unlicensed foreign insurance broker with a history of high-profile bribery scandals has been awarded a state-backed contract by the National Insurance Trust Fund (NITF). The move has raised alarm among local and international industry observers, transparency advocates, and legal experts.
The foreign company in question—identified by industry sources as Tysers—has previously been embroiled in a major bribery case filed by the U.S. Department of Justice (DOJ). The DOJ charged the firm with paying millions of dollars in bribes to Ecuadorian government officials to secure lucrative insurance and reinsurance contracts. The company has since agreed to pay fines and forfeit assets as part of a legal settlement, admitting to its role in the bribery scheme.
Despite this tarnished record, Tysers was recently appointed as the broker on record for a key NITF contract in Sri Lanka. Even more troubling, industry sources claim that this appointment was made without the company being licensed by the Insurance Regulatory Commission of Sri Lanka (IRCSL), in clear violation of laws requiring all brokers to be registered. These laws, enacted by Acts of Parliament, are designed to ensure regulatory oversight, tax compliance, and the integrity of the insurance sector.
“The entire industry is in shock,” said a senior official from a local insurance firm. “This is a blatant breach of regulatory norms, and worse, it sets a dangerous precedent. If a company with a proven record of corruption can bypass licensing, taxation, and accountability, it erodes the rule of law and public trust.”
According to whistleblowers and governance activists, this is not an isolated incident. The NITF has been accused of ignoring multiple court orders and regulatory guidelines in its dealings with the foreign broker. In a previous case, the Supreme Court upheld a ban on another unregistered foreign insurance company from operating in Sri Lanka, affirming lower court rulings that such entities could not legally provide services in the country.
In the present case, the NITF is alleged to have not only accepted Tysers’ bid but also facilitated premium payments despite the company’s non-compliance with legal and regulatory standards. Insiders claim that the NITF concealed the identity of the actual party bidding, misrepresenting the contractual arrangements during the procurement process. Critics argue this was a deliberate effort to evade scrutiny and facilitate the entry of a disqualified party.
“This is a textbook example of state complicity in enabling corruption,” said a prominent advocate for transparency and accountability. “In any bribery scheme, there are both givers and receivers. While we commend the zero-tolerance rhetoric against corruption by the current administration, it must also apply to foreign perpetrators—not just local facilitators.”
Adding to the concerns, industry experts point out that Tysers, which has reportedly offloaded its credit and political risk classes of business due to internal turmoil and staff exits, now lacks the capacity to service a national reinsurance contract. This has raised fears that claims under the contract—particularly in high-risk areas such as civil unrest and terrorism—could be denied or disputed due to the illegality of the underlying agreement.
The risk is not hypothetical. Reinsurance contracts currently held by elite global panels have reportedly been rendered void due to the inclusion of an unregistered broker in the chain of agreements. This could leave Sri Lanka financially exposed in the event of a disaster or crisis, as insurers may decline to honor claims linked to illegitimate arrangements.
In response to the growing outcry, formal complaints have been submitted to Sri Lanka’s Commission to Investigate Allegations of Bribery or Corruption. A criminal complaint has also been filed in court against Tysers, and appeals have been made to both the President and Prime Minister. The leadership has issued public assurances that the matter is under investigation and reiterated its commitment to a zero-tolerance policy on corruption.
Nevertheless, governance watchdogs remain skeptical. “Assurances are not enough,” said a legal expert familiar with the case. “We need action—transparent investigations, legal accountability, and a return to rule-based procurement and regulatory compliance.”
Meanwhile, the IRCSL has reaffirmed its guidelines stating that only registered brokers are authorized to participate in tenders or offer reinsurance services in Sri Lanka. The Attorney General has also previously issued opinions backing this position. Despite these clear directives, the NITF appears to be moving forward with the disputed contract without appointing a legitimate broker, thereby risking further legal and financial fallout.
As Sri Lanka attempts to rebuild trust in its institutions amid broader economic recovery efforts, this incident stands as a stark reminder of the systemic vulnerabilities that persist. If left unaddressed, experts warn, it could undermine not just the credibility of the insurance sector—but the integrity of public procurement across the board.
