Chandana L. Aluthgama, Group Chief Executive Officer of Sri Lanka Insurance and President of the Insurance Association of Sri Lanka (IASL), provides a forward-looking perspective on the insurance industry amidst the country’s ongoing economic recovery. He acknowledges Sri Lanka’s significant challenges in recent years but remains optimistic about the nation’s progress. With favourable responses from the IMF, debt restructuring efforts, and improved international relations, he believes these factors will contribute to economic stability and growth in 2024 and beyond. The decline in inflation despite temporary fluctuations along with government efforts to keep it below 5%, is expected to ease the cost of living and create a more favourable environment for industries, including insurance.
Chandana highlights Sri Lanka’s recent GDP growth of 5% and the positive market outlook stemming from the 2025 budget, which focuses on expanding small and medium-sized enterprises (SMEs) and accelerating digital transformation. He sees these developments as opportunities for economic expansion, increasing per capita income, and driving interest in financial security solutions like insurance. However, he points out that insurance penetration remains low, with the insurance sector contributing around 1% to GDP. Many Sri Lankans either cannot afford insurance or do not prioritize it, placing it at the bottom of their financial considerations.
Despite these challenges, Chandana is confident that economic improvements and digital advancements in the industry will enhance insurance accessibility. The shift toward digital platforms is streamlining processes, making insurance more convenient for consumers. He also observes a changing consumer mindset, particularly among the younger generation, who are transitioning from a traditionally dependent culture to a more independent financial approach. He draws comparisons to Western countries, where self-reliance drives higher insurance adoption.
Furthermore, he emphasizes the growing awareness of financial protection due to recent global and local crises, such as the pandemic and natural disasters. These events have reminded people of the importance of insurance for financial security. Additionally, increased government spending on public healthcare signals a demand for complementary private insurance solutions. The insurance industry also plays a crucial role in supporting businesses, particularly SMEs, by mitigating financial risks and fostering long-term economic resilience.
Chandana emphasizes that sustainability is a fundamental pillar of the company’s long-term strategy, ensuring that business growth goes hand in hand with creating lasting social impact. Through a well-structured corporate strategic plan, Sri Lanka Insurance continues to expand both its life and general insurance segments while retaining existing customers. In 2024, the company achieved a historic milestone, crossing the LKR 5 billion mark in new life insurance business for the first time in its 63-year history. This momentum reflects a strong focus on sustainable business growth, operational efficiency, and digital transformation.
Technology plays a crucial role in Sri Lanka Insurance’s sustainability efforts, enhancing both internal operations and customer experience. The company has integrated digital solutions like motor inspection services, allowing customers to report claims seamlessly through a smartphone link. This innovation significantly reduces waiting times and expedites claim settlements. Additionally, data analytics and AI-driven solutions are being explored to further optimize claims processing and risk management. He highlights the importance of aligning processes with technology rather than simply adapting technology to existing workflows. By embracing digital transformation and improving operational efficiencies, Sri Lanka Insurance is reducing waste, enhancing service delivery, and working toward a paperless future.
Beyond business growth, Sri Lanka Insurance remains deeply committed to social responsibility through extensive CSR initiatives. The company invests in education, youth development, and financial security programs, offering scholarships and insurance coverage for students. The Suba Pathum Scholarship Programme provides financial support for students at key academic milestones, while the company also grants free life insurance coverage to parents of newborns on Children’s Day. Additionally, Sri Lanka Insurance actively contributes to public healthcare, cancer treatment grants, and financial protection for underserved communities, reinforcing its role as a socially responsible insurer.
The company also plays a significant role in preserving Sri Lanka’s cultural and heritage values. Through its support for major religious and cultural events, such as the Poson Poya program in Anuradhapura and Cultural parades (Perahera). During the Poson program, pilgrims are provided with essential services like wheelchair assistance and support in finding misplaced persons. These efforts highlight the company’s dedication to both social well-being and national heritage preservation.
Chandana underscores that sustainability efforts have had a profound impact on stakeholders. For customers, enhanced accessibility, faster service, and strengthened trust are key outcomes. Employees benefit from a performance-driven culture with merit-based incentives, fostering engagement and efficiency. On a broader scale, Sri Lanka Insurance’s sustainability initiatives contribute to financial inclusion, social protection, and economic resilience, reinforcing its market leadership while creating long-term value for the nation. Through this comprehensive approach, the company not only secures its own future but also plays a pivotal role in Sri Lanka’s economic and social progress.
Chandana believes that effective leadership in today’s dynamic business environment requires a careful balance of vision, strategy, and a people-centric approach. As the leader of the country’s most trusted insurer, he emphasizes the need for forward-thinking leadership that can anticipate industry trends, embrace market shifts, and drive long-term, sustainable growth. He strongly believes in the principles of Jim Collins’ Level 5 leadership, which combines professional will with personal humility. According to him, leaders must not only focus on macroeconomic factors and market research but also work toward making insurance a fundamental part of every Sri Lankan household, much like it is in developed nations.
A key aspect of his leadership philosophy is customer-centricity. He stresses the importance of placing customers at the heart of decision-making by focusing on personalized solutions, digital convenience, and service excellence. Understanding evolving customer behaviours is critical, as today’s consumers demand fast, hassle-free services. Under his leadership, Sri Lanka Insurance Life closely monitors claims processing and customer satisfaction, ensuring transparency and efficiency. He believes that even if 95% of customers are happy, addressing the concerns of the remaining 5% is crucial. Effective communication in handling disputes and claims is essential to maintaining trust and delivering a seamless customer experience.
Adaptability and resilience are also at the core of Chandana’s leadership style. Navigating economic cycles, regulatory changes, and evolving risk landscapes requires agility and a commitment to business continuity. Digital transformation plays a significant role in enhancing operational efficiency and customer interactions, with Sri Lanka Insurance Life leveraging data analytics, automation, and virtual claim inspections. He is also a firm advocate of ethical governance, upholding transparency and integrity while championing policies that strengthen the industry and expand financial inclusion. As the President of the Insurance Association of Sri Lanka, he has been instrumental in positioning the local insurance industry on the international stage, exemplified by hosting the country’s first-ever international insurance summit by IASL.
Beyond strategy and operations, Chandana firmly believes in fostering a high-performance mindset through people-centric leadership. He acknowledges that transforming a mature organization with thousands of employees and agents requires gradual change, education, and clear communication. His introduction of KPI-based performance evaluations has shifted the company culture, rewarding high performers while maintaining accountability. He emphasizes that leadership does not require aggression but rather a structured, supportive approach that empowers employees to excel. Ultimately, his leadership is driven by purpose—ensuring Sri Lanka Insurance remains relevant, resilient, and dedicated to securing the financial future of every Sri Lankan household.
Sri Lanka’s insurance industry is poised for a transformative shift over the next five years, with Sri Lanka Insurance Life and Sri Lanka Insurance General playing a pivotal role in shaping its future. As a company with a 63-year legacy of setting industry benchmarks, SLIC has continuously pioneered advancements, from being the first to introduce computerization in the 1960s to embracing modern digital innovations. The evolution of the sector will demand a commitment to staying ahead of emerging trends, ensuring that the industry remains relevant and competitive in a rapidly changing landscape.
A key aspect of this evolution will be the integration of technology, including AI-driven underwriting, blockchain-based claims processing, and enhanced digital accessibility. With growing customer expectations, insurers will need to offer more personalized, flexible, and user-friendly solutions. The adoption of AI and data analytics will reduce human errors, streamline policy approvals, and enhance customer experiences. However, this transformation must be gradual, aligning with local market readiness and digital adoption trends.
Another critical area of focus will be the expansion of insurance coverage and financial protection across all segments of society. The industry must work toward making insurance more inclusive, ensuring every Sri Lankan has access to financial security. Additionally, the rising costs of healthcare and the increasing demand for life and health insurance post-pandemic highlight the need for stronger regulatory frameworks and structured healthcare policies. Aligning with global best practices in health coding and policy administration will create a more seamless experience for both insurers and policyholders.
Sustainability and ESG-driven initiatives will also play an increasing role in the industry’s future. Climate-related risks are becoming more prominent in corporate agendas, necessitating responsible underwriting and investment in green initiatives. While Sri Lanka faces challenges in reaching global sustainability standards, gradual adoption of climate-conscious policies will be essential for long-term resilience.
To sustain its momentum, the industry must also attract young talent and change the perception of insurance careers. In the past, insurance was considered a last-resort career option, but today, its role in providing critical financial protection is gaining recognition. Educating professionals on the ethical importance of the industry, such as ensuring transparency in policies and claims, will help strengthen public trust.
Collaboration within the industry and with external stakeholders, including regulators, financial institutions, and technology providers, will be instrumental in driving sustainable growth. As the largest insurer, Sri Lanka Insurance will continue its legacy as an industry leader, championing innovation, expanding financial security, and fostering a more accessible, digital, and customer-focused insurance landscape. By embracing change and maintaining its role as a trendsetter, SLIC will not only shape the future of Sri Lanka’s insurance industry but also set new benchmarks for excellence.