Sri Lanka-based Softlogic Life Insurance PLC has signed a Share Purchase Agreement to acquire a 60% stake in Bangladesh’s Diamond Life Insurance Company Limited for approximately US$ 1.9 million, marking a significant milestone for the country’s insurance industry.

The proposed transaction represents the first foreign direct investment (FDI) in Bangladesh’s life insurance sector, signaling growing international confidence in the country’s expanding financial services market. Subject to regulatory approvals, the acquisition will establish Softlogic Life’s presence in Bangladesh as part of its broader regional expansion strategy.

Beyond expanding Softlogic Life’s regional footprint, the investment is expected to contribute to the development of Bangladesh’s insurance sector by strengthening competition, encouraging innovation, and introducing global expertise. Increased foreign participation could also accelerate digital transformation, enhance customer-centric insurance products, and improve access to financial protection for individuals and businesses.

The proposed acquisition reflects Bangladesh’s ongoing efforts to attract foreign investment into high-potential sectors while deepening the country’s financial ecosystem. It also reinforces the growing appeal of Bangladesh’s insurance market as reforms and market opportunities continue to attract international investors.

Source: Bangladesh Investment Development Authority (BIDA)