Short answer: there’s no single “better” choice — Ceylinco Life is the dominant local market leader in Sri Lanka with deep local distribution and very large life funds, while AIA Sri Lanka offers the backing, product design and capital strength of the multinational AIA Group. Which is better depends on what matters most to you (price, claim service, product type, insurer strength, international backing). I’ll summarize the key differences and give guidance on how to choose.

Key facts (sources)

• Market position: Ceylinco Life is the largest life insurer in Sri Lanka and has been market leader for many years (reported market share ~21% and leading the sector). (ceylontoday.lk)
• Scale & financials (Ceylinco): Ceylinco reported large assets and life-fund growth (life fund ~Rs 180.9 billion; total assets ~Rs 251.4 billion at end-2024) and paid substantial claims/benefits in its latest published annual results. (ceylontoday.lk)
• AIA Sri Lanka positioning: AIA Sri Lanka is part of AIA Group (a large, publicly listed pan‑Asian life insurer). AIA Sri Lanka has been recognized repeatedly as “Best Life Insurer” locally and is noted for strong capital adequacy and growth. (aialife.com.lk)
• Recent growth: industry reports in 2025 show life-insurance GWP growth and cite Ceylinco as the sector leader while AIA recorded faster recent growth in some periods. (ceylontoday.lk)

How they typically differ (practical comparison)

• Financial strength and backing
  • Ceylinco: very large domestic life fund and long local track record; strong local brand recognition. Good if you prioritize a big, established local insurer with proven claim payments in Sri Lanka. (ceylontoday.lk)
  • AIA Sri Lanka: backed by AIA Group’s regional capital, product engineering, reinsurance access and global risk management. Good if you value multinational backing and product/design sophistication. (aialife.com.lk)
• Product range and innovation
  • Ceylinco: broad range of traditional life/endowment and local solutions; strong local distribution and brand campaigns. (ceylincolife.com)
  • AIA: tends to emphasize protection-focused products, wellness-linked features, and standardized product design used across Asian markets (may give more options if you’re looking for international-style riders or digital servicing). (aialife.com.lk)
• Claims handling & customer service
  • Both companies report awards and recognitions; local reputation and personal experience matter. Ceylinco often highlights long-term claim payouts and local awards; AIA promotes customer experience and industry awards. Public recognition ≠ identical personal service — experiences vary by branch/agent. (ceylincolife.com)
• Pricing and value
  • Pricing depends on the exact product, age, health, sum assured, and distribution channel. There’s no universal rule that one is cheaper — you’ll need quotes for the specific plan and beneficiaries you want.
• Regulation and solvency
  • Both operate under the Insurance Regulatory Commission of Sri Lanka; AIA benefits from parent-group capital and international reporting, Ceylinco from large domestic reserves. For solvency/Capital Adequacy Ratios check each company’s most recent regulatory filings if solvency is a deciding factor. (ceylontoday.lk)

Which should you prefer? (decision guide)

• Choose Ceylinco Life if:
  • You value a long-established local market leader, high local brand recognition, and large life fund/asset base.
  • You prefer local product designs (endowments/whole-life) and an insurer with deep local presence and branches.
• Choose AIA Sri Lanka if:
  • You value multinational backing (AIA Group), access to internationally designed protection products, wellness features, and standardized underwriting practices.
  • You want the perceived strength of a large pan‑Asian insurer and possibly product portability/consistency if you move/relocate within the region.
• If you need a specific product (term life, whole life, unit-linked/investment-linked, critical illness, retirement annuity), get side‑by‑side quotes and the product prospectuses — pricing, exclusions, waiting periods, riders and claim procedures make the practical difference.

Practical next steps I recommend

1. Narrow to the exact product you want (term, endowment, ULIP, critical-illness rider, pension).
2. Get written quotes and the product disclosure for the exact plan from both insurers (premium, coverage, exclusions, waiting periods, surrender values).
3. Ask for recent claim-settlement timelines and a sample policy document. If solvency matters, request the latest solvency / capital adequacy metrics or regulator filings.
4. Compare total cost and benefits over the policy term (not just first-year premium), and check agent vs direct sales differences.

If you want, I can:

• Compare two specific products (e.g., 20-year term Rs X coverage) from Ceylinco and AIA side-by-side if you give plan details, or
• Pull the most recent solvency/financial metrics and published claim-settlement data for both insurers (I can fetch up‑to‑date filings and news).

Which of those would you like me to do next?