Do Sri Lankan travel companies have liability insurance?

Yes, all SLTDA-registered travel companies in Sri Lanka are required by law to carry public liability insurance so they can protect tourists while they are operating. The coverage is a strict requirement for keeping their government licence valid, as it is non-negotiable.

That said, the domestic policies usually only cover events that are tied to the company vehicles, or incidents connected to their negligence. It does not take the place of comprehensive personal travel insurance, which you have to arrange on your own, to cover medical problems, flight disruptions, or lost luggage.