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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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‘With AI around, hardly anyone does any real work,’ says university don

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Professor Hiran Amarasekera of the University of Sri Jayewardenepura presents a Gold Award to Future Fibres Lanka (Pvt) Ltd at the SLAAQP Awards ceremony held in Colombo on February 12, 2026

While the corporate world celebrates the merger of efficiency and ecology, a leading academic last week issued a sobering warning: the very technology driving the next “Green Revolution” may leave the human workforce behind.

Speaking at the recently concluded Green Productivity Awards, organised by the Sri Lanka Association for the Advancement of Quality and Productivity (SLAAQP), Professor Hiran Amarasekera of the University of Sri Jayewardenepura characterised Artificial Intelligence (AI) as a “godsend” for environmental sustainability – but one that carries profound social risks.

Professor Amarasekera’s keynote address cut through the celebratory atmosphere, targeting a perceived complacency among top-tier management.

“Managers are already using AI, but many CEOs, directors and managing directors remain sceptical,” he observed. “They think AI will come in another five years. No, it is already here.”

According to the Professor, AI is no longer a futuristic concept but a functional tool currently revolutionising green metrics. He highlighted how the technology is already replacing manual monitoring for energy optimisation, using predictive algorithms to drastically reduce industrial waste, and automating sustainability reporting – turning months of consumption data analysis into a task of mere seconds.

While these advancements provide a massive boost to the “bottom line” and help organisations meet the national Net Zero pledge, Prof. Amarasekera warned of a looming “danger”: the displacement of human workers.

“AI is boosting productivity while cutting back the need for human resources. What will happen to the jobs and the wider society? Not even the USA or other advanced economies have an answer to this,” he noted.

In a moment that elicited both laughter and reflection from the audience, he touched upon the irony of modern higher education: “Students produce their work through AI and we detect plagiarism through AI. So, with AI around, hardly anyone does any real work!”

The technological warning was balanced by the moral urgency of Senior Professor Ajith de Alwis from the University of Moratuwa. Invoking the words of David Attenborough, Prof. de Alwis asked the audience how they would look into the eyes of their grandchildren if they knew of the world’s collapse and did nothing.

The takeaway message of the evening was clear: While AI provides the tools to save the planet, human leadership remains the only force capable of managing the social consequences of that salvation.

Despite the warnings of future challenges, the SLAAQP awards proved that Sri Lankan industries are currently making notable strides. The event recognised 38 organisations – including 28 Gold Award winners – across sectors ranging from plantation, garments and rubber to poultry and textiles.

These winners were evaluated on four critical pillars: Leadership, Environmental Sustainability, Productivity Enhancement and Social Contribution.

By Sanath Nanayakkare

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Gemological Report of Ceylon sets new global benchmark for local gemstone certification

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The facility utilises a screening process where three gemologists evaluate each stone independently to ensure error-free results Pic by Nishan S. Priyantha

Steps into a critical void to earn recognition in international markets

For decades, Sri Lanka has been globally revered as the “Island of Gems,” yet the industry has long grappled with a paradoxical challenge: while the Sri Lankan soil yields the world’s finest stones, the local certification process has often struggled to command the same recognition in international markets.

Stepping into this critical void is the Gemological Report of Ceylon (GRC). Located at No. 97, Galle Road, Colombo 3, this newly launched laboratory is on a mission to redefine the standards of local gem certification, ensuring that the “fatherhood” of Sri Lankan gemstones remains firmly within its home soil.

Founded by Milinda Edirisinghe, a seasoned gemologist with over 20 years of experience in mining, trading, and geological study, GRC is the result of a lifelong observation of the industry’s “trust gap.”

“I saw a critical disparity,” says Edirisinghe, who received specialised training in Thailand, the global hub for gemstone treatments. “Sri Lankan exporters often face unfair skepticism in markets like Thailand, Hong Kong, and the US. International buyers often view local reports with doubt. I launched GRC to provide a local institute that is on par with the highest-caliber laboratories in the world.”

He made these comments while speaking to media at the new laboratory.

According to him, in its first month of operation, GRC has already seen a surge in demand, processing 30 to 40 stones daily – a success driven largely by its word-of-mouth reputation.

Milinda Edirisinghe performs a sensory inspection of a gemstone using a loupe to assess its initial characteristics

“The lab’s rapid growth is built on a foundation of total transparency. Unlike traditional setups, GRC employs a rigorous triple-blind screening process: three independent gemologists evaluate each specimen – from Sapphires, Ruby and Emeralds to semi-precious stones, polycrystals, rare meteorites, and even organic materials like natural Pearls, and rare coral species etc., used in high-end jewelry. By evaluating the stones without consulting one another, the three gemologists’ independent findings are then synthesised into a final, authoritative and error-free assessment,” he explained.

“As gemstone treatments become increasingly sophisticated – ranging from Beryllium diffusion to evolving heat and irradiation treatments – the need for advanced technology is paramount. GRC’s facility is equipped to identify the full spectrum of enhancements, ensuring the end consumer knows the exact “human intervention” history of their asset,” he further said.

However, Edirisinghe maintains that technology is a tool, not a replacement. When asked if AI could eventually handle the certification job alone, he noted:

“AI already assists our workflow to an extent, but a human gemologist remains an indispensable part of the process. Just as a surgeon uses advanced technology to enhance precision, they must still be present to execute the nuances of a complex operation. AI cannot truly ‘see,’ touch, or feel the soul of a stone.”

He further added, “AI can support our findings, but it cannot replace the gemologist’s ‘eye-view’ and the tactile senses that go a long way in issuing an accurate certification.”

Furthermore, GRC leverages an international expert network. “If we encounter a complex inclusion, we utilize virtual screen-sharing with leading labs in Thailand for real-time peer review,” Edirisinghe explains. “Our conclusions are science-based facts, not just opinions.”

Beyond technical excellence, GRC serves a vital economic purpose. Historically, local dealers spent thousands of dollars obtaining international certificates. GRC offers these world-class reports at a fraction of the cost, with detailed certificates starting from LKR 15,000 for full reports, a medium report at LKR 6,000, “memo cards” at LKR 1,500, and verbal opinions for LKR 500.

“By providing a credible, globally-recognised home-based laboratory, we are stemming the outflow of foreign currency to international labs,” said Edirisinghe.

With plans to participate in upcoming exhibitions in Dubai, Hong Kong, and the USA, GRC is positioning itself as a global contender. As the industry shifts toward “knowledgeable customers” who view jewellery as a liquid asset, GRC stands ready to provide the clarity and integrity the Sri Lankan gem industry deserves.

“If Sri Lanka produces the best stones in the world, it is only right that we also provide the world-class expertise to certify them. Our mission is to ensure that the ‘fatherhood’ of these precious stones remains in Sri Lanka, backed by a certificate that is respected from the USA to the European Union,” Edirisinghe said in conclusion.

By Sanath Nanayakkare

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Ministry of Brands to launch Sri Lanka’s first off-price retail destination

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Ministry of Brands to launch Sri Lanka’s first off-price retail destination

Sri Lanka’s retail landscape will reach a major milestone with the launch of Ministry of Brands (MOB), the country’s first off-price retailer. The flagship store is set to open on 16 February 2026, introducing Sri Lankan consumers to authentic global luxury and premium brands at discounts of up to 90% off original retail prices.

Backed by Akbar Brothers, Ministry of Brands brings the globally established off-price model to South Asia for the first time. The concept allows customers to shop for genuine designer and brand-name products at significantly reduced prices while supporting more sustainable retail practices.

The 10,000 sq. ft. flagship store, located at 28/9, Vajira Road, R.A. De Mel Mawatha, Colombo 4, will feature an extensive range across apparel, footwear, handbags, accessories, homeware, and more. Ministry of Brands will carry over 2,000 international and designer brands spanning womenswear, menswear, childrenswear, home, and accessories, including names such as Gucci, Ferragamo, Valentino, Michael Kors, Ralph Lauren, Burberry, Rag & Bone, Lacoste, Puma, UGG, HOKA, Brooks, Air Jordan, and many more.

Off-price retail is one of the fastest-growing global retail segments, helping fashion houses responsibly manage excess inventory. With the UN Environment Programme estimating 92 million tonnes of textile waste generated annually, sustainable retail models such as off-price are increasingly important.

“Sri Lanka manufactures for many of the world’s leading designer labels, yet these products have often remained out of reach for local consumers,” said Director of Ministry of Brands, Aamir Akbarally. “Through off-price retail, we are proud to make genuine designer brands more accessible to our fellow Sri Lankans, offering premium fashion at affordable prices while delivering a world-class shopping experience built on Akbar Brothers’ longstanding values of integrity, quality, and trust.”

Ministry of Brands Director, Ramzey Hammoud added: “With decades of experience in off-price retail, we see this as an exciting new growth chapter for Sri Lanka’s retail landscape. Our goal is simple: to allow customers to shop global designer brands locally at the best prices, while rediscovering the thrill of the find through a constantly changing, treasure-hunt shopping experience.”

Following the Colombo flagship launch, Ministry of Brands will open a second location at the One Galle Face Mall, with plans to expand across South Asia and Australia.

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