Sri Lanka Insurance Corporation, better known by its acronym SLI, is planning weekly board meetings, re-assigning responsibilities to staff and offering a VRS (Voluntary Retirement Scheme) under a new structuring plan following large scale mismanagement at the organisation.
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| Customers at the SLI office on Friday. |
In response to a series of questions asked by the Sunday Times on SLI management under the previous regime, SLI Chairman Pradeep Kariyawasam said on Thursday in his first-ever interview to the media, that companies owned and managed by businessman Harry Jayawardena mismanaged the company and granted favours and high perks to subordinates in an indiscriminate manner before the Supreme Court returned it to the state. Some employees were transferred to far-away SLI branch offices without a reason. Services of several employees were terminated and many harassed by the management, he said.
Unreasonable transfers and promotions of employees of some workers were the order of the day at that time, Mr Kariyawasam said adding that he will look into the grievances of employees on a case-by-case.
“This has created frustration among employees and such a situation cannot be tackled overnight,” he said, also explaining the reasons for the restructuring. He disclosed that action will be taken to examine the data base and an audit inspection to re-install the data base at the SLI premises. All dealings under the former management (2003 to 2009) will be investigated and a proper audit conducted to find out if there has been any misappropriation, if any. This report will be presented to the president, he said.
The Supreme Court last month overturned the privatisation of SLI, saying it was fradulently done, and handed it back to the state after which a new board of directors was appointed.Discussing the new plan, Mr Kariyawasam said its main objective is to ensure there is strategic direction and focus on the markets.
Pradeep Kariyawasam |
The thought process of the plan was initiated by SLI CEO Dr. Nalaka Godahewa who will supervise its implementation under the guidance of the chairman and board of directors. The new chairman, who took over last week, said weekly board meetings will be held till plans to strenghten the insurance business of the company are fully in place.
He said Chief Officers of various disciplines will be appointed to 10 strategic business units of the company and this will be supevised by Dr. Godahewa who is in charge of operations and strategic planning. He said, “we will have a band of performers … not passengers and saboteurs”.
Mr Kariyawasam, with 30 years of managerial experience in the corporate sector particularly in the insurance sector as a CEO, said under the new structure the SLI will maintain strict discipline and duly compensate those who contribute for the progress of the organisation. Workers whose output is poor would be offered the VRS. However, he added that he will not adopt a hire and fire policy.
The company will fill positions of chief officers from outside if there is no one competent enough within the company for these posts and such officers will be well remunerated.
New Apollo board soon
The Board of Directors of Apollo Hospitals would be soon re- constituted with the SLI having a majority stake of 54%. The SLI board will also decide on their other investments made in private sector companies, accordingly, SLI Chairman Pradeep Kariyawasam said. |
Mr Kariyawasm, an old Royalist who opened batting for the college and was vice captain of the cricket team in the centenary ‘Battle of the Blues’ in 1979, wants to instill a good corporate governance and transparency model at SLI while running it as an efficient private sector organisation with the blessings of the President. He said that people have confidence in the public sector with the recent setback in finance and insurance fields owing to the global recession and economic downturn as well as the Golden Key scam. He expressed the belief that SLI will regain its number one position from the present number four positition among 15 insurance companies operating in the island.
Three high powered committees comprising SLI board members are to be entrusted with implementating the restructuring plan. The area of purview of these committees includes Audit and clearance, inputs and remunerations. SLI will also introduce new innovative products with the opening of the North and East for normal business while there is also room for the industry to grow, as 90 % of the population doesn’t have any kind of insurance coverage in the country, noted Mr Kariyawasam, husband of senior Supreme Court Justice Shirani Bandaranayake.
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