Sri Lanka Motor Insurance: Credit Period Cut to 30 Days from 1 May 2026

The announcement

At the unveiling of the Insurance Industry Development Roadmap in Colombo, Insurance Association of Sri Lanka President Lasitha Wimalarathne said credit terms will be implemented for motor insurance: the credit period reduced from 90 days to 30 days starting 1 May 2026, with a plan to move toward zero credit (cash before cover) gradually (Sunday Times, 26 April 2026).

What it means in plain language

• Today, insurers can cover a vehicle before the premium is fully paid, within a credit window.
• The window is being cut from 90 days to 30 days from 1 May 2026.
• The longer-term direction is paying the premium before cover starts.
• The report does not give a date for full cash before cover, so we do not state one.

The wider roadmap

IRCSL Director General Damayanthi Fernando said Sri Lanka's life and general insurance premiums in 2025 stood at Rs. 380 billion across 29 insurers, and that the industry has a target of more than Rs. 700 billion by 2030, described as a 14 per cent compound annual growth rate target.

She also said insurance penetration is just above one per cent of GDP and that, in catastrophes such as the 2004 Tsunami, the 2017 floods and Cyclone Ditwah in 2025, only 5-6 per cent of total losses were insured.

What drivers should do

• Check the payment terms on your next renewal and pay on time.
• Ask your insurer in writing when cover starts relative to payment.
• Keep proof of payment with your policy documents.

Fact-checked on 30 October 2026 against the sources listed below. Tax rules and prices change by gazette, so confirm with Sri Lanka Customs or the Ministry of Finance before you pay.