Sri Lanka

Sri Lanka Insurance Market Highlights

Market Regulation:

The primary regulator is the IRCSL. Axco’s local intelligence focuses on 2026 solvency margin maintenance amidst the country's ongoing macroeconomic recovery.

Non-Life Market Trends:

Motor insurance is the largest non-life class; however, Axco’s data shows a 2026 uptick in Health insurance demand due to rising private medical costs.

Distribution Channels:

The market is primarily agency-driven; Axco analysis identifies significant ongoing efforts by insurers to digitise "last-mile" delivery to rural populations.

Key Risks & Outlook:

Economic stability is the primary variable; Axco’s outlook suggests that growth is contingent on continued IMF-backed structural and financial reforms.

Insurance Companies:

Axco Navigator details there are 30 insurance companies are authorised to write business in the Sri Lanka, of which 14 operate in non-life classes and 16 in life-classes.

Insurance Statistics:

Axco reports written premiums in 2025 increased by 19.9% to LKR 134,942 Mn with motor the largest class of business, accounting for 56% of premiums. Insurance penetration stands at 0.43%.

Insurance Intelligence

Providing expert analysis, independent market insight and company data on the insurance industry.

Insurance market reports are produced following a country visit with interviews with professionals working in the sector with systematic updates to information throughout the cycle. Covering market developments, macroeconomic factors and comprehensive details of the regulatory environment including relevant taxation as well as market indicators and company statistics.

Axco’s Sri Lanka Non-Life Insurance Market Report (P&C) also comprises a detailed analysis of lines of business and sub-classes such as natural hazards, property, construction and machinery breakdown, motor, workers compensation & employers’ liability and liability.

The Life & Benefits Report for Sri Lanka includes detail on social security, healthcare, individual life assurance and pensions information as well as market statistics and life company statistics

Key Benefits

• Superior market insights
• Crucial compliance information
• Risk assessment and profitability

What is the Non-Life Insurance market in Sri Lanka?

In the Non-Life (P&C) market, National Insurance Trust Fund was the market leader, recording LKR 26,523.36 million in written premiums and 19.20% market share in 2024. It was followed by Sri Lanka Insurance Corporation Ltd (LKR 22,251.69 million; 16.11% market share) and Ceylinco General Insurance Ltd (LKR 21,501.15 million; 15.56% market share).

Among the leading non-life insurers, National Insurance Trust Fund reported the strongest growth, with premiums increasing 70.3% year-on-year. 14 companies are licensed for non-life business. 

Who are the top non-life insurers in Sri Lanka?

Source: Axco Navigator, Sri Lanka Insurance Market Rankings.

What is the Life Insurance market in Sri Lanka?

In the Life insurance market, Ceylinco Life Insurance Ltd was the largest insurer in 2024, generating LKR 37,140.42 million in written premiums and holding 20.20% market share. It was followed by Softlogic Life Insurance Plc (LKR 31,573.47 million; 17.17% market share) and Sri Lanka Insurance Corporation Ltd (LKR 26,358.58 million; 14.34% market share).

The fastest-growing major life insurer was Continental Life, with premium growth of 198.8% year-on-year. 16 companies are licensed for life business. 

Who are the top life insurers in Sri Lanka?

Source: Axco Navigator, Sri Lanka Insurance Market Rankings.

Country Information

Sri Lanka has a recorded history going back thousands of years before the Portuguese arrived at the beginning of the 16th century. Their settlements were taken over by the Dutch in 1650. The Netherlands remained the colonial power until 1802 when Ceylon, as Sri Lanka was then known, was ceded to Britain. The island remained a British crown colony until independence in 1948.

Non-life premiums, including personal accident and healthcare, for 2018 were LKR 101.20bn, an increase of 8.37% compared to 2017. Growth slowed somewhat towards the end of 2018, as the economy started to suffer from the unstable political situation and the stand-alone healthcare business written in the non-life sector reduced by over 3% during the year as some customers moved their business in this class to the life insurance market.

In August 2019, 27 insurance companies were active in the market. Two of these are composite insurers, whilst 12 are registered to handle only non-life business and 13 engage solely in life classes.