The Lloyd's underwriting scheme to cover vessels against war and terrorism perils when calling at Sri Lankan ports will lapse on 8 March. The deposit will be released to the Sri Lankan government.
This is due to the improving political climate in Sri Lanka, and the increased state of security at ports and airports.
The scheme was put in place following the attack on Columbo airport in July 2001 that caused underwriters to increase levels of rating. Lloyd's and a government delegation negotiated a contract under which the Sri Lankan government would bear part of the risk.
The successful scheme has resulted in continued low cost coverage, and only limited trade disruption.
