Since 1958, the Government of Sri Lanka has invested in crop insurance schemes. This was initiated with a pilot project in selected areas and later expanded to several nationwide agricultural insurance schemes. Initially managed by the Crop Insurance Board, these schemes are now overseen by the Agriculture and Agrarian Insurance Board (AAIB) as well as the National
Insurance Trust Fund (NITF), which has been contributing to crop insurance fund maintenance since its establishment under the National Insurance Trust Fund Act in 2006.

Since its inception, crop insurance in Sri Lanka has undergone various changes in modalities and operations. As of 2021, two main insurance schemes for farmers were operated by the AAIB: a compulsory crop insurance scheme for those registered for the fertilizer subsidy distributed by the Department of Agriculture through Agrarian Service Centers (farmers certified as eligible for the fertilizer subsidy by agrarian service officers); and voluntary insurance schemes for crops, livestock, storage facilities, agricultural equipment, implements, and health/ accidents (Suwasetha).

This summary brief provides an overview of the operational modalities of this scheme as well as a snapshot of the enabling environment and policy landscape for crop insurance in Sri Lanka.

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