The Agricultural and Agricultural Insurance Board Act No. 27 of 1973, Act No. 27 of 1973, established the Agricultural Insurance and Social Security Board to fulfill the responsibility assigned to the Government to protect local agriculture and the agriculturist in the face of emergency situations and to build an economically and socially satisfied retired agricultural community. was established as the only state insurance agency for. It was re-established as the Agricultural and Agrarian Insurance Board, Agricultural and Agrarian Insurance Board by the Agricultural and Agrarian Insurance Act No. 20 of 1999.
As a risk management method, by introducing agricultural insurance systems under the sectors of crop, livestock, and general insurance to the agricultural sector in Sri Lanka, contributing to agricultural risk management, assisting in reducing the economic collapse of the farmers in the event of a sudden disaster, and helping the financial institutions that provide agricultural loans. It also helps in developing financial stability.
Furthermore, by introducing social security schemes, it will contribute to secure the retirement life of the farmers involved in the agricultural sector in Sri Lanka and provide financial relief to the farmers in case of hospitalization through medical assistance schemes.
The Agricultural and Agrarian Insurance Board provides continuous service to the local agriculturist under the Agricultural Risk Management and Social Security.