• Register as insurers persons carrying on insurance business in Sri Lanka.
• Register persons as insurance brokers.
• Advise the Government on the development and regulation of the insurance industry.
• Implement the policies and programmes of the Government with respect to the insurance industry.
• Employ such officers and servants as may be necessary for the purpose of exercising, performing and discharging the powers, duties and functions of the Board.
• Acquire and hold any property, movable or immovable and sell, lease, mortgage or otherwise dispose of the same.
• Enter into all such contracts as may be necessary for the exercise, performance and discharge of its powers, duties and functions.
• Carry out such other acts as may be necessary for the due exercise, discharge and performance of its powers, duties and functions under this act.

The main function of the Investigation Division is to inquire into complaints referred by aggrieved claimants relating to unsatisfactory settlement of a claim or by policyholders regarding misconduct/misappropriation by an intermediary. The Division also investigates complaints relating to qualifications of insurance agents as per the Rules/Regulations issued in terms of the RII Act No. 43 of 2000 as amended. In addition the Division queries into matters referred either internally or by way of complaints relating to any alleged irregularity/noncompliance in terms of the RII Act No. 43 of 2000 as amended and/or Rules and Regulations made thereunder.

The main function of the Legal Division is to provide advisory services to the Board on legal matters. In this regard the Division Formulates Rules, Regulations, Directions, Determinations, etc. required to be made in terms of the Regulation of Insurance Industry Act, No. 43 of 2000 (RII Act) and formulates amendments to the RII Act and subordinate legislation mentioned above with a view to creating a robust insurance regulatory framework. The Division also evaluates applications for registration of persons as insurers and insurance brokers to engage in insurance business and insurance brokering business in Sri Lanka. In addition, the Division evaluates applications for the appointment of Directors of insurers and Principal Officers of insurers and insurance brokers.

Supervision Division monitors the solvency of insurance companies and financial stability of insurance companies and broking companies by periodical review of their financial reports. In addition, it carries out on-site inspections of insurance companies and brokering companies. Further, steps are currently being taken to introduce “Risk Based Supervision” for the supervisory mechanism replacing the existing “Rules Based” supervisory system.

The main responsibilities of Finance and Administration division are, to have a robust administrative and financial management system, improved internal system and controls, sound IT infrastructure, retain efficient and competent staff while enhancing knowledge and skill of them and timely compliance with administrative requirements. It is vested with the responsibility of collecting revenue on time, prudently investing these funds, expending with proper budgetary control and preparation and submission of financial reports on time.

MDER Division, conducts training and awareness programmes for the general public in order to impart knowledge and increase awareness on insurance related matters, with a view of facilitating the development of the insurance industry. The Division prepares in-house publications and carry out media campaigns pertaining to the subject of insurance.