Foreign reinsurer terminates coverage for Sri Lanka’s only reinsurance firm

General insurers in Sri Lanka could be exposed to potential financial risks when settling insurance claims after an international reinsurer terminated its reinsurance contract with Sri Lanka’s only reinsurer –National Insurance Trust Fund, The Sunday Times reported. The contract was terminated after a local broker responsible for collecting premiums from NITF in local currency and paying the foreign reinsurer in U.S. dollars failed to do so due to scarcity of dollars in crisis-stricken Sri Lanka.