Sri Lanka crop cover expands as drought floods and elephants hit

Losses linked to weather and environmental shocks are weighing on farm incomes.

Sri Lanka’s Agricultural and Agrarian Insurance Board (AAIB) will roll out an insurance month for farmers from February 2026, expanding crop insurance coverage against climate, animal and pest-related risks.

Under the programme, farmers can insure a range of crops including paddy, maize, potatoes, onions, soybeans and chilli, reported the Sri Lanka Mirror.

Coverage protects against losses caused by drought, floods, wild elephants, insects and pests, diseases and fire.

The move comes as crop losses linked to weather and environmental risks continue to weigh on farm incomes.

The AAIB said premiums are set at affordable levels. For crops such as cowpea, mung bean, finger millet, sesame and horse gram, farmers can receive compensation of up to $192 (LKR60,000) per acre, with premiums fixed at 7% of the insured value.

For sweet potato, cassava, cabbage, beans, tomatoes and pumpkin, the premium is also 7% per acre, meaning $320 (LKR100,000) of coverage for sweet potato costs $22.40 (LKR7,000).

($1.00 = LKR310.98)