It is good option to have your travel insurance from a reputed when you are visiting Sri Lanka. The package must cover trip cancellation, medical emergencies and other events like theft. Most of the travel insurance companies doesn't provide direct financial assistance as you have to go through with their paper works to claim your loses.
While visiting a foreign country you may face cancelled flights, medical emergencies, flooding, earthquake, cyclones, lost luggage, lose of ID's and many other unexpected hazards that may delay your travel in a foreign country, many people also had lost their iPhones which used to have important data where some people had even lost their electronic air tickets that were stored in their iPhone.
You may had not forgot the volcanic ashes that had delayed flights in many airports where thousands of travelers stranded in airports in 2010. Many of them had their travel insurance and some of the insurers didn't accept responsibility for the cancel flights due to volcanic ashes. You must keep in mind such events when you are looking for travel insurance.
People used to buy insurance for their pets too to cover unexpected happenings to their beloved pets when they take them on a tour with them in a foreign country.
When in Sri Lanka you may come across flight cancellation, hotel room cancellation, flooding, road accidents, land sliding and many more unexpected events. So it is better to have an insurance plan from your own country or you can get one in Sri Lanka. Also take note that some companies requires special insurance plan to cover your sports related accidents. So if you are going to take part in any sports related activities here better to have some special insurance through your travel agent.
Mean while its compulsory for Sri Lanka travelers who are visiting certain countries must have travel insurance before they board the flight. Otherwise they have to make arrangements to get their travel insurance in that country where they are going to land through their relatives or friends.
Sri Lanka citizens who have credit card accounts in certain banks can enjoy free travel protection from their bank.
Source: Sri Lanka Insurance
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