Sri Lanka aims to double insurance penetration by 2030

A comprehensive seven-pillar strategy to double insurance penetration by 2030 and triple it by 2035 was launched by the Insurance Regulatory Commission of Sri Lanka.

The Insurance Industry Roadmap 2030-2035, introduced yesterday in Colombo, targets an aggressive 14% annual growth rate to drive sector premium income above Rs. 700 billion by 2030. This initiative addresses the current domestic market, where total premiums reached Rs. 380 billion in 2025, yet penetration remains just above 1% of GDP. Despite low penetration, the sector manages Rs. 1.4 trillion in assets and pays out roughly Rs. 172 billion in annual claims.

Insurance Regulatory Commission Director General Damayanthi Fernando described this protection gap as an extraordinary opportunity for industry growth rather than a weakness. Minister of Public Security and Parliamentary Affairs Ananda Wijepala confirmed the state's commitment to these reforms, particularly regarding digitalisation. He noted that higher insurance coverage would reduce the financial burden on the state during national disasters.

The framework focuses on systemic reforms, including:

• Standardised affordable products and mandatory home and motor insurance.


• New distribution models using digital onboarding, bancassurance, and telecommunication networks.


• Modernised regulations to allow tax relief on protection products.


• Strengthening the National Insurance Trust Fund to retain risk capital within the country.

A tripartite task force involving the Finance Ministry and industry stakeholders will monitor progress through quarterly performance indicators. Additionally, Commission Chairman Dr Raveendra De Mel introduced a new digital data system and motor insurance digital card. This technology allows law enforcement to instantly verify policy status via QR code or SMS, a move intended to improve market discipline and recover uncollected revenue.