News

The Evolving Role of Life Insurance in Sri Lanka

Published

11 months ago

2025/07/13

Senath Jayatilake Chief Executive Officer of Union Assurance

“One undeniable truth we all face is the uncertainty of life. In a world where change is constant and the future unpredictable, the need for financial security and empowerment has become more essential than ever,” says Senath Jayatilake, Chief Executive Officer of Union Assurance while highlighting the pivotal role of the Life Insurance industry in strengthening Sri Lanka’s socio-economic landscape.

How do you view the evolution of the Life Insurance industry in Sri Lanka?

For decades, the Life Insurance industry in Sri Lanka has struggled against a persistent misconception: that its value is only realised after the death of the policyholder. This outdated belief has limited its reach and impact, preventing many from experiencing the full potential of what Life Insurance truly offers.

In reality, Life Insurance is a promise for the living. It is part of a proactive financial strategy that supports individuals and families throughout their lives. From facing medical emergencies, preparing for retirement, planning a child’s education, to building a buffer against life’s uncertainties, Life Insurance helps people protect their dreams and navigate challenges with confidence. In today’s fast-paced socio-economic landscape, people are looking for financial solutions that offer both security and growth. Life Insurance meets this need by acting as a dynamic tool that adapts to changing life stages and priorities.

What role does Life Insurance play in the household financial strategy?

At the heart of a household’s financial strategy should be two essential pillars: empowerment and protection. Empowerment is about building wealth—saving, investing and planning for life’s goals. Protection ensures that these goals are not derailed by unexpected events. Life Insurance uniquely bridges these two pillars, offering both disciplined savings and robust financial security. It is not just a safety net—it is a powerful enabler of long-term well-being.

This balance is ever more important in today’s volatile economic climate. Historically, Sri Lanka has faced recurring economic volatility, with our household savings rates hovering around 24% as reported in 2024. This means that three out of four households lack savings to fall back on, leaving them vulnerable and without a safety net to withstand financial shocks. Meanwhile, societal dynamics are shifting. Dual-income households are on the rise, which means that the loss of one income can have dire consequences. Single-parent families face even greater financial risks. Life Insurance can help close these gaps. It provides a structured way to save while offering a financial cushion in times of crisis supporting families through life’s transitions ensuring they can move forward with confidence.

What Steps Can Sri Lanka Take to Bring the Real Impact of Life Insurance to Life?

To truly unlock the potential of Sri Lanka’s Life Insurance industry, several strategic imperatives must be addressed. First and foremost is financial inclusion. With only around 10% of the insurable population currently covered, the country faces a significant protection gap. Bridging this divide requires innovative approaches such as mobile-based distribution, community-driven outreach programmes and even pushing embedded Life Insurance solutions. These can make Life Insurance more accessible, affordable and relevant to underserved segments in society. Additionally, improving financial literacy is essential. Many individuals remain unaware of how Life Insurance works or how it can benefit them beyond death coverage. Targeted education campaigns, simplified products and transparent communication can help build trust and drive adoption.

Secondly, like other financial service providers, the Life Insurance sector must view digitalisation not just as a performance enhancement tool but as a strategic necessity for evolution and long-term relevance. By leveraging technology, companies can make the entire customer journey more seamless and user-friendly, delivering real-time responsiveness, transparency and complete visibility into the status of customer requests. This digital ecosystem empowers customers by giving them greater control over their Life Insurance policies, fostering trust and engagement. Moreover, digital platforms enable insurers to personalise Life Insurance propositions, streamline operations and harness data analytics to better understand customer needs and behaviours.

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News

Implementation of water supply projects in small town and rural areas.

Published

7 hours ago

2026/06/3

Priyan

Access to safe drinking water for populations residing in small towns and rural areas of Sri Lanka has not yet been fully ensured, and this continues to pose a major challenge to the country’s social and economic development.

With a view to overcome this situation, a programme has been planned to provide clean drinking water to approximately 600,000 families living in semi-urban and rural areas through the implementation of 300 projects covering 50 small towns and rural areas.

The projects are aimed at establishing safe, reliable and sustainable drinking water supply systems, with water to be treated through modern purification technologies, including chlorination and filtration systems, in conformity with national and international drinking water standards.

Accordingly, having considered the resolution furnished by the Minister of Housing, Construction and Water Supply, the Cabinet of Ministers granted approval for the implementation of the proposed programme by the National Water Supply and Drainage Board and the National Community Water Supply Department during the period 2027–2029, subject to the conduct of a feasibility study on the proposed programme and inclusion in the Public Investment Programme based on its outcome.

News

Cabinet nod to submit Import and Export (Control) Regulations No. 04 of 2026 to Parliament for its concurrence

Published

7 hours ago

2026/06/3

Priyan

Hydrochlorofluorocarbons (HCFCs), which are chemical compounds widely used in refrigerators and air conditioning units, are being globally phased out under the Montreal Protocol due to their high potential for ozone layer depletion and global warming.

Sri Lanka has likewise committed to phasing out these chemical substances by the year 2030 in a stepwise manner. Accordingly,
regulations under the Import and Export (Control) Act, No. 1 of 1969, namely the Import and Export (Control) Regulations No. 04 of 2026, published in Extraordinary Gazette Notification No. 2487/29 dated 2026-05-07, have been issued, prohibiting, with effect from 2026-06-06, the importation of equipment and appliances that operate solely on hydrochlorofluorocarbons, and prohibiting, with effect from 2028-01-01, the importation of compressors used as components in refrigeration systems of equipment and appliances that operate solely on hydrochlorofluorocarbons.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President in his capacity as
the Minister of Finance, Planning and Economic Development to submit the aforementioned Regulations to Parliament for its concurrence.

News

Declaration of Elephant Migratory Corridors to minimize HEC in Monaragala and Hambantota districts

Published

7 hours ago

2026/06/3

Priyan

Wild elephants inhabit approximately two-thirds of the land area of Sri Lanka, and it has been identified that the rapid obstruction of elephant habitats and migratory corridors due to various development projects and human activities has directly contributed to the escalation of human–elephant conflict.

It has been recognised that, in order to mitigate such conflict to a certain extent, the protection of wild elephant habitats and migratory corridors must be undertaken as a matter of urgency.

The Department of Wildlife Conservation is currently engaged in identifying wild elephant migratory corridors in collaboration with relevant Divisional Secretaries, stakeholder agencies, and organisations.

Under the Wild Elephant Migratory Corridor Identification Programme in Monaragala District, the Wild Elephant Migratory Corridor from Handapanagala to Demodara
across Menik Ganga (River Menik) up to Yala National Park has been identified, and approval has been granted by the Monaragala District Coordinating Committee for that.

The Elephant Migratory Corridor from Yala National Park’s Zone VI -Lunugamvehera National Park to Udawalawe National Park has already been declared as the Wetahira Kanda Nature Reserve in 2002.

Within this area, five (05) licensed land plots have been identified, and these lands have not yet been developed.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Environment to take the following measures:

To declare, under the provisions of the Flora and Fauna Protection Ordinance, the elephant migratory corridor from Handapanagala in Monaragala District to Demodara across Menik Ganga up to Yala National Park as a sanctuary.

To provide alternative land outside the wildlife reserve area in lieu of the five (05) licensed land plots located within the Wetahira Kanda Nature Reserve area, and to re-declare the Wetahira Kanda Nature Reserve as an elephant migratory corridor.

To acquire, upon payment of compensation, land parcels containing buildings constructed in a manner that obstruct the Koholankala elephant corridor in the Hambantota District, and to declare the relevant area of the Hambantota Wild Elephant Management Reserve as a sanctuary.