Thrift (Armeria marítima) is common all over Iceland, both in coastal regions but very much too in the interior deserts!
It prefers sandy and gravelly soils and eroded areas. It can however, also be found in heathers and poor grasslands.
When flowering , the rose heads of flower clusters are quite characteristic and can not easily be mistaken for other species.
Reference: http://www.iceland-nh.net/plants/data/Armeria-maritima/armeria_maritima.html