Sri Lanka insurance premiums jump 25% to $350m in Q1 2026

Industry earnings before tax edged up just 3.14% to $30.4m.

Sri Lanka's insurance industry recorded gross written premium of $350.0m (LKR114,863m) in the first quarter of 2026 (Q1 2026), up 24.54% year-on-year (YoY), according to the Insurance Regulatory Commission of Sri Lanka.

The long-term (life) insurance sector accounted for $194.7m (LKR63,888m) of gross written premium in Q1 2026, up 25.13% YoY.

General Insurance gross written premium rose 23.81% YoY to $155.3m (LKR50,975m) during the quarter.

As at 31 March 2026, 15 companies were licensed to conduct life insurance business and 14 companies were licensed to conduct general insurance business in the country.

Life insurance assets rose 14.02% YoY to $3.3b (LKR1,088,527m), remaining the largest share of industry assets in Q1 2026, whilst general insurance assets grew 25.90% YoY to $1.2b (LKR378,340m).

Reinsurance sector assets fell 4.45% YoY to $36.3m (LKR11,910m), from $38.0m (LKR12,464m).

Total claims incurred rose 19.88% YoY to $140.1m (LKR45,977m) in Q1 2026.

Life insurance claims increased 21.03% YoY to $85.5m (LKR28,051m), whilst general insurance claims rose 18.13% YoY to $54.6m (LKR17,926m), including settlements linked to Cyclone Ditwah.

Profit before tax across the industry rose 3.14% YoY to $30.4m (LKR9,978m) in Q1 2026.

Life insurance profit before tax fell 11.51% YoY to $13.4m (LKR4,390m), whilst general insurance profit before tax rose 28.13% YoY to $22.0m (LKR7,215m).

The regulator said the industry's performance reflected resilience amidst macroeconomic conditions and the aftermath of Cyclone Ditwah, which affected several provinces in late 2025, as well as the cumulative effects of the

COVID-19 pandemic, the 2022 economic crisis, political instability, high inflation and currency depreciation in prior years.

($1.00 = LKR328.17)