IRCSL bars outside employment for insurance principal officers

The Insurance Regulatory Commission of Sri Lanka (IRCSL) has issued a fresh directive significantly tightening the employment standards for the principal officers of insurance and brokering companies, effectively barring these top executives from holding any outside employment, consultancy or professional engagements.

- By NISHEL FERNANDO

Issued on January 12, 2026, Direction No. 1 of 2026 replaces the previous regulations from 2023 and mandates that the principal officer must be the person holding the highest executive position in the company.

In a move that signals a stricter approach to corporate governance and conflict of interest, the regulator has explicitly stated that these officers shall not engage in or undertake any other full-time or part-time employment, consultancy or professional engagement. This marks a shift from the repealed 2023 direction, ensuring that the industry's key decision-makers are exclusively committed to the insurer they lead.