Sri Lanka Launches Nationwide Farmer Insurance Drive

Sri Lanka’s Agricultural and Agrarian Insurance Board (AAIB) has announced that February 2026 will be designated as “Insurance Month” for farmers, with a nationwide campaign aimed at expanding access to crop insurance. Operating under the Ministry of Agriculture, Lands, Livestock, and Irrigation, the AAIB intends the month-long initiative to both encourage farmer enrolment and educate agricultural communities on available products, coverage conditions, and the claims process.

The initiative allows farmers to obtain coverage for multiple crop types against a wide range of production risks, including weather-related hazards and biological threats. Eligible crops include staples and cash crops such as paddy, maize, potatoes, onions, soybeans, and chili, as well as other locally cultivated crops. Insurance coverage will extend to losses caused by drought, floods, wild elephant incursions, insect infestations, plant diseases, and fire—factors that frequently disrupt agricultural output in Sri Lanka.

Premium Structure and Coverage

To guide farmers, the AAIB has released sample premium rates and compensation limits. For pulses and minor cereals—including cowpea, mung bean, finger millet, sesame, and horse gram—coverage is set at LKR 60,000 per acre, with a premium rate of 7% of the insured sum. The same 7% rate applies to crops such as sweet potato, cassava, cabbage, beans, tomatoes, and pumpkin. For example, a farmer insuring sweet potatoes at LKR 100,000 per acre would pay a premium of LKR 7,000.

Separate schemes have been designed for higher-value crops like ginger, turmeric, cinnamon, pepper, pineapple, papaya, and banana. These products target growers whose income is concentrated in fewer cash crops and who face significant vulnerability to localised climatic or disease-related losses.

Distribution and Support

Farmers can access detailed information and enrolment services through AAIB’s head office and district offices. Staff will provide guidance on eligibility, premium calculation, policy terms, and claim procedures. The campaign also aims to generate valuable data on insured crop types, loss patterns, and market trends, which can support future product development and private-sector partnerships.

Global and Regional Context

The AAIB initiative occurs amid a growing global agricultural insurance market, valued at US$38.5 billion in 2022 and projected to reach US$67.4 billion by 2032, a compound annual growth rate of 5.8%. Multi-peril crop insurance (MPCI) remains the dominant product segment, with banks emerging as the fastest-growing distribution channel. While North America currently accounts for the largest premium share, the Asia-Pacific region is expected to see the highest growth.

For Sri Lanka, Insurance Month 2026 represents a model for public-sector-led expansion of agricultural insurance, demonstrating how simplified pricing, broad coverage, and national office networks can extend protection to smallholder farmers in emerging markets. Regional insurers and policymakers will be watching closely for lessons in scaling risk mitigation and improving farmer resilience.