Insurance Payouts Inject Billions Back into Economy

COLOMBO (News 1st); Sri Lanka’s insurance sector is playing a critical role in accelerating economic recovery, with tens of thousands of claims currently being processed and billions already paid out, according to the Ministry of Finance.

Providing an update on the status of insurance settlements, Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, said the Insurance Regulatory Commission of Sri Lanka (IRCSL) is closely monitoring all insurance claims received, ensuring that benefits are delivered to affected individuals and businesses as early as possible.

Dr. Suriyapperuma confirmed that more than 24,000 insurance claims have been submitted to date. Of these, claims amounting to Rs. 4.7 billion have already been paid out.

While some claims have been rejected on valid grounds, the Finance Ministry emphasized that these decisions are based on regulatory assessments carried out by insurers under the supervision of the Insurance Regulatory Commission.

According to reports received from the Insurance Regulatory Commission, insurance claims valued at approximately Rs. 45 billion are currently being processed.

Dr. Suriyapperuma noted that this reflects the large volume of funds being gradually released back into the economy, offering much-needed financial relief to affected individuals and enabling businesses to restart their livelihoods and operational processes.

These payouts, he explained, are a key mechanism for restoring economic activity in communities impacted by recent disruptions.