Sri Lanka’s Agricultural and Agrarian Insurance Board (AAIB) has officially designated February 2026 as “Farmer Insurance Month,” a nationwide initiative aimed at increasing access to crop insurance and enhancing risk awareness among the country’s farmers. The campaign, operating under the Ministry of Agriculture, Land, Animal Husbandry, and Irrigation, will run throughout the month, providing farmers across all regions with detailed information on insurance policies, benefits, and claims procedures.
The initiative enables farmers to secure coverage against a broad spectrum of agricultural risks, including adverse weather conditions, animal or pest attacks, diseases, fire, floods, droughts, and other natural disasters. Eligible crops include rice, maize, potatoes, onions, soybeans, chillies, and various other local produce, reflecting the diversity of Sri Lanka’s agricultural sector.
Premium Structure and Examples
To assist farmers in understanding costs and potential compensation, the AAIB has released a sample premium and coverage table:
| Crop Category | Sum Insured (per acre, LKR) | Premium Rate | Example Premium (LKR) |
|---|---|---|---|
| Lentils, Mung Dal, Finger Millet, Sesame, Horse Gram | 60,000 | 7% | 4,200 |
| Sweet Potato, Cassava, Cabbage, Beans, Tomato, Pumpkin | 100,000 | 7% | 7,000 |
| Ginger, Turmeric, Cinnamon, Chillies, Pineapple, Papaya, Banana | Market Value | 7–10% | Varies |
A separate scheme is also available for high-value cash crops, designed to reduce financial risk for farmers whose income relies heavily on premium produce.
Access and Support
Farmers can obtain further guidance from AAIB’s central office or regional branches. Local offices will assist with eligibility verification, premium calculations, policy terms, and claims processing, as well as support on-site registrations throughout February.
Global Context
The global agricultural insurance market is experiencing rapid growth. According to Allied Market Research, the sector was valued at USD 38.5 billion in 2022 and is projected to reach USD 67.4 billion by 2032, representing an annual growth rate of 5.8%. Multi-Peril Crop Insurance (MPCI) remains the largest and fastest-growing segment worldwide.
Asia-Pacific Implications
Farmers across the Asia-Pacific region face seasonal weather fluctuations, market price volatility, climate change, and disease risks. Premium affordability remains a challenge for smallholders, highlighting the importance of government support and subsidies. Sri Lanka’s February 2026 Farmer Insurance Month demonstrates how coordinated national initiatives and a robust office network can improve insurance accessibility, building resilience for farmers in the face of growing agricultural uncertainties.