Recent reports outline that a consortium of investors is to infuse Rs. 700 million in to MBSL Insurance Ltd., as part of an overall initiative to resume the business. However reports outline that the Merchant Bank of Sri Lanka and Finance Plc (MBSL) insurance subsidiary is currently suspended due to failure to comply with minimum capital requirements stipulated by the insurance regulator Insurance Regulatory Commission of Sri Lanka (IRCSL). Reports noted that MBSL said it has entered into an investment agreement on 31 Dec. 2018 with a strategic investor for the purpose of capital infusion of Rs. 700 million and MBSL will invest the balance Rs. 500 million.

Further unconfirmed reports noted that the new consortium includes United Capital Holdings Ltd., which includes a consortium comprising institutions and individuals. Accordingly reports further said that MBSL will invest a further Rs. 500 million bringing the capital infusion to Rs. 1.2 billion. The relevant approval from IRCSL has been obtained and the MBSL and strategic investor intends to conclude the proposed capital infusion of Rs. 1.2 billion in insurance venture before 31 January this year.

In early April 2009, the Merchant Bank of Sri Lanka PLC (MBSL) completed its 100 percent acquisition of ABC Insurance Company Limited, then a subsidiary of the ABC Group, in terms of a Share Transfer Agreement entered with the shareholders of the company, that time MBSL Chairman Janaka Ratnayake had told reporters that MBSL bought the company infusing nearly Rs. 100 million.