Protecting future of Sri Lankan agriculture

Case for national agricultural insurance scheme

- BY LALIN I DE SILVA

As Sri Lanka faces worsening climate uncertainty, rising input costs, and falling farmer confidence, the time has come for bold action to secure the future of its agriculture.

One of the most effective tools available is agricultural insurance a safety net that protects both farmers and the national economy from the shocks of climate change, market volatility, and production failures.

Across the tropical world in 2025, agricultural insurance schemes have evolved into essential components of rural development policy. From India and the Philippines to Kenya and Brazil, governments have recognised that traditional relief after disaster is no longer sufficient. Instead, they are moving toward proactive, insured farming systems that promote resilience, reduce dependence on emergency funds, and encourage continuous investment in cultivation.

The Indian example stands out for its scale and scope. Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), over 2 million farmers are insured annually, with the government covering up to 90% of the premium in rain-fed areas. In 2025, India further expanded the Restructured Weather Based Crop Insurance Scheme (RWBCIS) to include key plantation crops such as tea, coffee, rubber, and coconut. Using weather indices like rainfall and temperature to trigger payouts, these schemes ensure income stability for long-term crop growers exactly the kind of protection Sri Lanka's tea and rubber smallholders need.