Below is a concise, practical guide to retirement annuity options in Sri Lanka — what’s commonly available, who regulates and sells them, tax/treatment highlights, pros/cons of each option, and practical steps to buy one.

1. Main types of retirement annuity / retirement‑income options available in Sri Lanka

• Immediate annuity (single premium → regular income starts right away). Common when you convert a lump sum at retirement into a guaranteed payment. (softlogiclife.lk)
• Deferred annuity / pension plan (you pay premiums or accumulate fund value; at retirement you convert to income or take part as lump sum + annuity). Many life insurers offer deferred retirement products with the choice of lump-sum, annuity or mixed payout. (softlogiclife.lk)
• Annuity certain / fixed‑term annuity (payments for a guaranteed number of years — e.g., 10 or 20 years certain). Sri Lanka’s market commonly offers fixed‑term annuities (OECD notes fixed‑term annuities up to 20 years are available). (hnbassurance.com)
• Life annuity / joint life annuity (income for life, or until both spouses die). Availability of true lifetime annuities is more limited than fixed‑term/term‑certain products in some markets; insurers in Sri Lanka do offer life and joint‑life options but product features vary. (softlogiclife.lk)
• Programmed withdrawal / income drawdown (withdraw scheduled amounts from a retained fund rather than buying an annuity — sometimes offered under pension frameworks). National pension frameworks discuss programmed withdrawal as an option alongside buying an annuity. (citizenspensions.com)

2. Who sells and regulates annuities in Sri Lanka

• Life insurance companies are the main providers of annuity products (examples of active life insurers: Softlogic Life, HNB Assurance, Ceylinco Life, AIA, Allianz Life Insurance Lanka, Janashakthi, Union Assurance). Check each insurer’s retirement/annuity product pages for exact terms. (softlogiclife.lk)
• Regulators and authorities:
  • Insurance Regulatory Commission of Sri Lanka (IRCSL) oversees insurers and insurance products.
  • The National Pension Commission issues regulations/guidance relating to pension conversions and annuity rules where national pension frameworks apply.
  • Other public schemes (Employees’ Provident Fund, Employees’ Trust Fund) are administered separately and interact with private annuity options at retirement. (softlogiclife.lk)

3. Key tax and legal points (high‑level)

• Treatment of pension/annuity payments is governed by Sri Lanka’s tax law (Inland Revenue Act). Some pension payments (for example government pensions and certain approved pension/provident funds) have specific tax exemptions or special treatment; lump‑sum retirement payments may face withholding/retention rules in some cases. Exact tax impact depends on the source of payment (government vs. private insurer vs. approved fund), how the payment is structured (lump sum vs periodic), and current tax law. You should confirm the current Inland Revenue guidance for the year you plan to take benefits. (srilankalaw.lk)

4. Typical product features to compare (what to shop on)

• Type: immediate vs deferred; life vs term‑certain vs joint life. (softlogiclife.lk)
• Payout frequency and indexation: monthly vs quarterly, inflation linkage (many annuities are level unless an inflation rider is purchased). (hnbassurance.com)
• Guaranteed period / beneficiary protection: e.g., “10 years certain” means payments continue to beneficiaries if you die within the guaranteed period. (citizenspensions.com)
• Return / annuity rate (how much income per LKR 1,000,000 lump sum) — dependent on insurer pricing, interest rates and longevity assumptions. Ask for current illustrative rates. (ceylincolifeannualreport.com)
• Solvency / creditworthiness of insurer and regulatory protection (IRCSL oversight). (softlogiclife.lk)
• Fees, surrender terms, and portability/transfer rules (especially if you hold a retirement savings account under a pension framework). (citizenspensions.com)

5. Pros and cons — high level

• Annuity (guaranteed income): pro = predictable, longevity protection; con = limited liquidity (money exchanged for a lifetime stream), inflation risk unless indexed. (softlogiclife.lk)
• Fixed‑term annuity / term‑certain: pro = higher payments for a fixed period, easier to plan short‑term; con = no lifelong income after period ends. (hnbassurance.com)
• Programmed withdrawal / partial annuitization: pro = flexibility and retained capital; con = longevity risk (you may outlive the fund) and possible higher investment/management risk. (pencom.gov.ng)

6. Practical steps to choose and buy an annuity in Sri Lanka

• Inventory your retirement pot(s): EPF/ETF entitlements, any RSA/personal pension savings, life policies with maturity benefits. (pencom.gov.ng)
• Decide objectives: guaranteed lifetime income vs partial income + lump sum vs preserving capital for heirs. Consider spouse/dependants.
• Request illustrations from several licensed life insurers (immediate annuity quotes and deferred annuity maturity conversion examples). Ask each insurer for: payout amount per LKR of premium, guaranteed period options, death‑benefit/beneficiary rules, indexing options, fees and solvency/credit info. (softlogiclife.lk)
• Check regulatory protections and product documentation: IRCSL product terms and any National Pension Commission requirements if you’re converting a regulated retirement account. (softlogiclife.lk)
• Confirm tax consequences with a local tax advisor or the Inland Revenue Department before you convert a lump sum to an annuity (treatment depends on source and structure). (srilankalaw.lk)

7. Quick list of providers to contact for product brochures / quotes

• Softlogic Life, HNB Assurance, Ceylinco Life, AIA Insurance Lanka, Allianz Life Insurance Lanka, Janashakthi Life, Union Assurance (product availability/terms vary; check each insurer’s retirement/annuity product pages). (softlogiclife.lk)

8. Things to watch for / questions to ask an insurer or adviser

• Is the annuity immediate or deferred? Are payments level or inflation‑linked?
• What is the guaranteed period (if any) and beneficiary treatment on death?
• Can you buy a joint‑life annuity (spouse) and what reduction applies?
• Can you take a partial lump sum at conversion (commutation) and use remainder to buy income? (Common in some plans.) (hnbassurance.com)
• What are surrender/early‑exit rules and fees?
• Are there riders (critical illness, hospitalization) that you should bundle with retirement plans? (softlogiclife.lk)

9. Final recommendations

• Get quotes from multiple licensed life insurers and compare the effective annuity rate, guarantees, indexing, and death‑benefit rules. (softlogiclife.lk)
• If you hold regulated retirement savings under any national scheme, check the National Pension Commission / pension rules that apply to conversion options (some frameworks specify minimum annuity guarantees or programmed withdrawal rules). (citizenspensions.com)
• Confirm tax treatment with a Sri Lanka tax advisor or the Inland Revenue Department before you act. Tax rules and withholding on lump sums / pension payments change with legislation. (srilankalaw.lk)

If you’d like, I can:

• Pull current annuity illustrations (example payouts per LKR 1M) from 2–3 specific insurers (I’ll request their latest illustrations), or
• Summarize the specific rules that apply if you plan to convert an Employees’ Provident Fund / ETF / RSA balance into an annuity (tell me which account you’re using).

Which next step would be most useful to you?