Index-based Insurance and Climate Information in Sri Lanka: Prospects for Community-based Rainfall Stations

Kanchana Wickramasinghe

Climate insurance for farmers has been a hot topic recently owing to recurring floods and droughts in agricultural districts in Sri Lanka. In these instances, interventions are necessary to help farmers adapt to weather and climate changes, using effective risk management strategies. Global experience has shown that insurance serves as an important risk management tool in this regard. However, an IPS study indicated that, in Sri Lanka, climate insurance is not yet considered a popular risk management strategy adopted by farmers due to issues in supply and demand. 

Supply-side issues are related to the indemnity-based crop insurance products offered in Sri Lanka. The study proposed to shift to index-based insurance, to eliminate problems of traditional indemnity-based crop insurance. It further identified the lack of climate data as a main barrier in implementing index-based insurance in Sri Lanka.  

Climate Information Needs of Farmers: What is in Demand?

Anita Perera and Geethika Maddumage

As a developing country that still depends heavily on agriculture for rural livelihoods, Sri Lanka faces many challenges due to climatic changes. Without reliable climate-related information, farmers are unable to make accurate farming decisions. In the past, farmers were able to rely on their traditional knowledge to make precise weather predictions. They were well-versed on local weather patterns and the specific climatic requirements for crops, thanks to long-term experience and knowledge passed through generations. 

Sri Lankan Farmers’ Traditional Knowledge and Climate Change Predictions

Dilani Hirimuthugodage

“If eagles and grey hornbills are flying above their normal height in the sky, it signals that rain is expected soon; if seagulls are flying close to the ground, it suggests that there will be heavy rainfall. However, these patterns have now changed because of the development activities in the Lunugamwehera Tank, Bundala Salt Corporation, etc.” said Mr. Bandara, a 60 year old paddy farmer from Bundala, in Hambantota District. He attended the Participatory Rural Appraisal (PRA) programme of a research study conducted by the Institute of Policy Studies of Sri Lanka (IPS), and other partner institutes.