Review of Sri Lanka’s insurance sector performance

Q1 - Q3 2025 and comparative analysis: Q3 2025 vs Q3 2024

- By THE INSURANCE REGULATORY COMMISSION OF SRI LANKA

THE insurance sector remains a key component of Sri Lanka’s financial system, particularly in an environment characterised by past economic uncertainty and the increasing impact of recurring natural disasters. By providing financial protection against unexpected losses, insurance plays a vital role in supporting households, businesses, and industries to recover from adverse events, while contributing to overall economic stability through effective risk transfer and mitigation.

A resilient and well-functioning insurance sector is essential to strengthening economic confidence, promoting investment, and safeguarding livelihoods. As Sri Lanka continues its path toward economic recovery and sustainable growth, the performance and stability of the insurance sector remain important to enhancing long-term national resilience.

As of 30 September 2025, the insurance sector’s performance was as follows:

Fifteen (15) licenced insurers operating in the Long-Term Insurance sector; and

Fourteen (14) licenced insurers operating in the General Insurance sector.

As illustrated in Chart 1, the insurance industry recorded a consistent and robust growth in Gross Written Premium (GWP) throughout the first three quarters of 2025, reflecting strengthening market activity across both long-term and general insurance segments.

In the first quarter of 2025, total GWP amounted to Rs. 92,229 million, comprising Rs. 51,056 million from the long-term insurance segment and Rs. 41,172 million from general insurance. During the second quarter of 2025, total GWP increased significantly to Rs. 184,545 million, with contributions of Rs. 107,283 million from long-term insurance and Rs. 77,262 million from general insurance, indicating broad-based growth across the sector.