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Shaping the future of Sri Lanka’s insurance industry

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Lasitha Wimalaratne, President of the Insurance Association of Sri Lanka

Sri Lanka’s insurance industry today stands at a decisive and promising crossroads. We are a country with a commendably high general literacy rate, a strong foundation on which to build. While our financial literacy, particularly in the area of insurance, has room to grow, this also presents us with an exciting opportunity. By addressing this gap, we can identify new avenues for industry growth and strengthen national resilience. As the Insurance Association of Sri Lanka (IASL), we see this moment as an opportunity to drive impactful change. Our vision, as a collective, is to expand penetration, embrace technology and build lasting trust through greater financial awareness.

The future of Sri Lanka’s insurance industry

At present, Sri Lanka’s insurance penetration is just over one per cent of GDP, a figure that compares poorly even with many of our regional peers. India and Indonesia, for example, have already surpassed us despite their larger and more complex markets. Over the next three years, we aim to double this penetration in Sri Lanka.

To achieve this, we are working on developing new products and channels that can reach segments of the population which have remained underserved. From micro-insurance and telco-driven products that appeal to lower and middle-income households, to tailor-made solutions for high-net-worth individuals, our approach must be inclusive and adaptive. Ultimately, our goal is to increase GDP contribution while ensuring that every Sri Lankan has access to the protection and peace of mind that insurance provides.

Our vision also extends beyond numbers. Inspired by India’s commitment to insuring its population, we aspire to “insure the nation.” I believe that more than half of Sri Lanka’s working population is already touched by insurance in some form, whether through micro products, corporate schemes or motor coverage. But vast gaps remain, especially in areas such as household property insurance, where coverage is low unless tied to mortgages. These are the areas where the industry must redouble its efforts.

Innovation, technology and digitalisation

Technology will be at the heart of this transformation. The global insurance industry is racing towards digitisation, data analytics, and automation and Sri Lanka must keep pace. Digital platforms enable faster processes, more accurate risk assessments and a seamless customer experience.

Within IASL, we are prioritising digitalisation initiatives that will streamline operations across the industry and align our practices with global standards. A key part of this effort is ensuring that the entire industry is ready to comply with the new IFRS 17 guidelines by January next year. While some companies are well on their way to readiness, others are still preparing.

Artificial intelligence, in particular, presents both opportunities and challenges. If used effectively, AI can improve underwriting, enhance claims management and help insurers understand risks more precisely, allowing for fairer and more accurate pricing. This benefits both the customer, who pays a premium that reflects their real risk and the insurer, who is protected against unsustainable losses.

Yet Sri Lanka still faces

hurdles in harnessing the full potential of AI. Much of our health and property data remains in paper-based formats, making it challenging to analyze. Hospitals, for instance, are only slowly adopting digital records, and there is little standardisation across institutions. To truly reap the benefits of AI, we must invest in digitizing critical infrastructure and data systems, ensuring that information can be collected, shared and analyzed responsibly.

Building consumer trust and financial literacy in insurance

Equally important to our growth agenda is the task of strengthening financial literacy and consumer trust. While awareness of insurance has improved in recent years, particularly in the wake of the pandemic and the economic downturn, many Sri Lankans still view insurance with scepticism. Some see it as a luxury, others doubt whether claims will be honoured. Additionally, a worrying number of policies lapse after the first year due to poor need-based assessments at the point of sale. These issues erode confidence in the industry as a whole.

To change this narrative, IASL has launched awareness programs aimed at educating both young people and adults on the importance of financial planning and protection both online and on ground. Furthermore, earlier this year, the Insurance Regulatory Commission of Sri Lanka initiated a series of regional awareness sessions, which we as the IASL were very pleased to join in as we jointly conducted the first awareness session in Matara and a second program is planned for Jaffna later this year. Our goal is to hold such sessions every quarter, reaching schools, universities and community groups. By starting with the younger generation, we can help instill a culture of financial discipline and ensure that future decision-makers recognize the role of insurance in securing their lives and families.

The insurance industry cannot achieve its objectives in isolation. We are actively working to build stronger partnerships with reinsurers, brokers, banks, telecommunications providers, healthcare institutions and IT companies. Through bancassurance models, digital hospital networks and cross-sector CEO forums, we are aiming for a more connected ecosystem that can expand access to insurance while improving service delivery.

At the same time, we must recognize the importance of discipline and ethical conduct within our industry. Regulators are stepping in with stricter frameworks, such as mandatory welcome calls, customer satisfaction tracking and more rigorous need-based analysis, to prevent mis-selling and enhance customer confidence. IASL fully supports these reforms and has gone a step further by maintaining an industry-wide database to prevent unethical advisors from moving unchecked between companies. By tightening standards and raising accountability, we are determined to ensure that every customer receives the value and protection they are promised.

The essence of this vision is a call to every Sri Lankan, which is not to view insurance as a luxury, but as a vital necessity for a secure future; an indispensable financial safety net which helps one surmount untold hardships if life were to throw a curveball. It is the peace of mind that allows you to face an uncertain future with confidence. It relieves the burden on government services, protects families from financial ruin and ensures that hard-earned assets are preserved. Whether it is life, health, retirement or property coverage, adequate insurance is one of the most responsible decisions an individual can make.

Sri Lanka has much to learn from developed markets, where insurance penetration is far higher and the benefits are widely understood. By combining innovation, technology, financial literacy and strong governance, we too can build an industry that secures the well-being of our nation. The journey ahead will not be easy, but with determination and collaboration, we can ensure that every Sri Lankan enjoys the protection and peace of mind that insurance provides.

(The writer is the President of the Insurance Association of Sri Lanka)

By Lasitha Wimalaratne ✍️



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Priority areas for deepening Japan-SL economic ties

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Executive Committee for the Year 2026/2027

Japan Business Council (SLJBC) of The Ceylon Chamber of Commerce recently held its 47th AGM, with the Ambassador of Japan and the Patron of the Council, Akio ISOMATA, attending as the Chief Guest.

Addressing the gathering, Ambassador ISOMATA outlined three priorities for deepening bilateral economic relations: an effective and forward-looking trade and investment policy, the promotion of domestic industrial policy, and expanded investment in renewable energy. He noted that Sri Lanka’s ongoing review of its Free Trade Agreement policy would be important in shaping the country’s future negotiating landscape. He encouraged Sri Lanka to look Eastward toward Southeast Asia and Japan, proposing that the country adopt an export-oriented industrial model. The Ambassador welcomed the Government’s National Export Development Plan 2026 and National Mineral Policy 2026 as consistent with Japan’s vision of connecting Sri Lanka’s export-related manufacturing sectors with India’s high-growth manufacturing base.

In his address, President Athulla R F Edirisinghe reflected on nearly seven decades of humanitarian and development support extended by Japan to Sri Lanka, and paid tribute to the Chairman of the Sasakawa Peace Foundation Yohei Sasakawa, for his magnanimity in establishing the Foundation. Reflecting on the history of Japanese investment in the region from the 1970s onward, he observed that Sri Lanka had missed many opportunities to attract Japanese foreign direct investment. Highlighting the 2025 proposal for a Sri Lanka – Japan Economic Corridor by the Ministry of Economy, Trade, and Industry Japan, he called on Sri Lankan businesses, industry associations, and the wider community to come together in dialogue with the Government to ensure the country does not miss this opportunity as well.

2026/27 Committee: President: Athulla R F Edirisinghe – Director, Hirohama Ceylon (Pvt) Ltd, Senior Vice President – Ruwan Waidyaratne – Managing Director, Hayleys Advantis Ltd, Vice – President – Shamil Mendis – Managing Director, Spear International (Pvt) Ltd, Treasurer – Rohitha Mendis – Managing Director of Prudential Shipping Lines (Pte) Ltd, Immediate Past President – Mahen Kariyawasan – Managing Director, Andrew The Travel Company (Pvt) Ltd, representatives from Amano Lanka Engineering (Pvt) Ltd, BOV Capital (Pvt) Ltd, Brandix Apparel (Pvt) Ltd, Heritage Teas (Pvt) Ltd, Kalhari Enterprises (Pvt) Ltd, Lanka Harness (Pvt) Ltd, Dentsu Grant (Pvt) Ltd, MAC Holdings (Pvt) Ltd, and Vidullanka PLC. By invitation: HVA Foods PLC (subsidiary of George Steuart & Co), Spillburg Holdings (Pvt) Ltd, and Vaughan Chemicals (Pvt) Ltd.

The Sri Lanka – Japan Business Council plays an important role in promoting trade, tourism, and investments between Japan and Sri Lanka. For membership inquiries contact Kiyara at The Ceylon Chamber of Commerce via E-mail: businesscouncils1@chamber.lk or Tel.: 011 5588875/ 5588800.

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Rekawa turns turtle conservation into a 30-year community business model

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Stakeholders at 30th anniversary celebrations of the turtle conservation project.

By Ifham Nizam

What started 30 years ago as an effort to protect sea turtles has evolved into a community-based economic model that has generated livelihoods, attracted tourists and transformed Rekawa into one of Sri Lanka’s best-known nature tourism destinations.

The Rekawa Turtle Conservation Project, launched on September 2, 1996, by the Turtle Conservation Project (TCP) in partnership with the Department of Wildlife Conservation and the Rekawa community, marked its 30th anniversary last week, demonstrating how biodiversity protection can become an economic opportunity for communities living alongside sensitive natural resources.

Speaking at the anniversary celebrations, TCP chairman Thushan Kapurusinghe said the project currently provides direct livelihoods for 28 people, but its economic impact extends considerably beyond those directly employed by the programme.

‘Today, 28 people directly earn their livelihood through this project. But its impact goes far beyond those 28 individuals, Kapurusinghe said.

He pointed to the transformation of the area over the past three decades, arguing that the growth of tourism in the community has been closely linked to the turtle conservation programme.

‘If you travel from Netolpitiya to this area, you can clearly see how much the village has transformed over the years. There is no doubt that the growth of tourism in this community has been driven by the Turtle Conservation Project, he said.

The economic significance of Rekawa lies in its ability to convert the protection of a natural asset into a source of recurring community income.

Tourists do not come to Rekawa merely to see a beach. They come to witness sea turtles emerging from the ocean and nesting in their natural habitat—a tourism experience that depends directly on the continued protection of the nesting beach.

Kapurusinghe said tour operators regularly bring visitors to Rekawa, with some tourists traveling there after visiting major attractions such as the Kandy Esala Perahera.

The model represents a fundamental shift from viewing conservation as an expense to recognising biodiversity as an economic asset that can generate sustainable livelihoods when properly managed.

The 30th anniversary celebration at the Rekawa Turtle Conservation Project Information Centre brought together Southern Wildlife Region Director of the Department of Wildlife Conservation Channa Suraweera, government officials, conservation organisations, community representatives and long-standing supporters of the initiative.

Individuals who had contributed to the project over the past three decades were also recognised with awards for their service to sea turtle and environmental conservation.

Rekawa’s experience has attracted international attention because of precisely this combination of conservation and community development. The project has received international recognition as well as the Green Employment Award from the Ministry of Environment and Natural Resources. Earlier international recognition included a highly commended ‘Tourism for Tomorrow’ award, while the project’s turtle-watch programme subsequently received further recognition in responsible tourism and conservation.

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Ceylinco Life brings premium policyholders closer to the magic of the Kandy Perahera

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For an evening, the timeless spectacle of the Kandy Esala Perahera unfolded at especially close quarters for a select group of Ceylinco Life’s most valued policyholders and their families, who were hosted to an exclusive viewing experience by the Company’s Customer Relations Division.

Held at the Ceylinco Life Kandy Branch on Kings Street, the annual event coincided with the second Randoli Perahera, bringing guests into the heart of one of Sri Lanka’s most spectacular expressions of culture, tradition and pageantry.

As the procession made its majestic passage through the streets of Kandy, guests enjoyed VIP seating at a prime vantage point, allowing them to experience the colour, movement and grandeur of the Perahera up close. The evening offered a fitting setting for Ceylinco Life to celebrate its enduring relationships with its premium clientele.

The experience extended well beyond the spectacle outside. Guests were welcomed with evening refreshments and an exclusive dinner buffet presented by the prestigious Amaya Hills Resort, adding a fine-dining dimension to an already memorable evening.

Families, too, were at the centre of the occasion. A private movie theatre experience provided entertainment for children and adults alike, while each attending family received a beautifully framed family photograph as a personalised souvenir, a tangible reminder of an evening shared together against the backdrop of one of Sri Lanka’s most treasured cultural traditions.

Besides being a much sought-after opportunity to watch the Perahera, the occasion was an expression of appreciation. Through its continuing Customer Relationship Management activities, Ceylinco Life seeks to create experiences that recognise its most valued policyholders not simply as customers, but as relationships to be celebrated and nurtured. And on this particular August evening, the enduring splendour of the Kandy Perahera provided the perfect setting for doing just that.

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