Investigation of Factors Affecting Agricultural Insurance Demand in Sri Lanka
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Date
2012
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Publisher
Uva Wellassa University of Sri Lanka
Abstract
Sri Lanka, like most of the countries in the Asian region has an agricultural economy and plays an important role in the nation's economy and social developn. ;pit. Though we had the self-sufficient economy in the past, today in most of the time the development of the country depends upon the commercial agriculture. It has become the backbone of the development of our country. Thus, central bank annual report has proved the contribution of Agriculture to Sri Lankan Gross Domestic Product (GDP)in 11.9% and source of er1.ployment for more than 32% of the Sri Lankan population (Central bank Annual Report, 2010).
In that context, as a developing country, Agriculture has gained the most prominent position in Sri Lanka. However, annual losses in Agricultural sector are huge in Sri Lanka due to unexpected bad weather, adverse prices of agricultural production, damages from insects and other various diseases. If the farmers come across with huge losses, they are helpless and always looking for a financial assistant from an external party.
All over the world, the use of Agricultural Insurance as a risk management tool has grown rapidly in recent years (Munich Re, 2009),In most of the countries, this kind of insurance policy was introduced almost four decades ago. In Sri Lanka, even though we have a great history, Agricultural Insurance is still not so popular (Poverty Portal Report,2010). Therefore, this research aims at an investigation of factors affecting the demand of agricultural insurance in Sri Lanka.
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Keywords
Entrepreneurship and Manangment, Entrepreneurial Agriculture, Agriculture