SLFRS 17 Implementation to Shift Life Insurance Focus to Profitability 📈

• Regulatory Timeline: Sri Lanka adopted IFRS 17 as SLFRS 17 in January. However, reporting for the first two quarters of 2026 is deferred until 30 September 2026 to resolve pending accounting and taxation issues with the Inland Revenue Department (IRD). • Strategic Shift: The longstanding industry emphasis on Gross Written Premium (GWP) is set to give way to insurance service revenue and Contractual Service Margins (CSM). This shifts investor focus from overall premium volumes to underlying profitability and long-term value creation. • Product Impact: Insurers are expected to place a heavier emphasis on protection products over investment-oriented ones, as only the protection component is recognized as insurance service revenue under the new standard. • Market Outlook: The evolving framework and solvency requirements are anticipated to improve transparency, encourage industry consolidation over time, and make Sri Lankan life insurers more comparable to regional peers, potentially boosting attractiveness to foreign investors.