Unit trust industry begins the year with Rs. 610 Bn assets under management
The unit trust industry of Sri Lanka reported a 6.1% year-over-year growth of its assets under management (AUM), crossing the Rs. 600 Bn mark by the end of January 2026. Furthermore, AUM was up 3.8% since December 2025. These assets are currently managed across 84 funds by 16 management companies. AUM was driven primarily by equity-related funds, which doubled to Rs. 67 Bn from the prior year, while also growing by a rapid 10.2% since December 2025. Fixed income funds, on the other hand, grew by 2.9% year-over-year. The continued growth in equity-related funds reflects positive investor sentiment and a willingness to participate in the strong capital market performance seen over the past two years, as investors increasingly seek long-term capital appreciation. The industry saw 3,110 new unit holders invest in the market in January, up 35.0% year-over-year, bringing the total number of unit trust investors to 147,020, which represents a 25.7% year-over-year increase. This growth reflects the continued efforts of the Unit Trust Association of Sri Lanka (UTASL) and regulators to enhance awareness, accessibility and confidence in relation to unit trust investments. Commenting on the January industry results, Treasurer of the UTASL and CEO – Unit Trusts & Head of Equities at LYNEAR Wealth Management, Asanka Herath noted: “The industry’s performance in January reflects a healthy start to 2026, supported by sustained inflows into equity-related funds and steady overall expansion of assets under management. This trend suggests that investors are becoming more deliberate in their allocation strategies—seeking growth opportunities while maintaining diversified exposure through professionally managed funds.” He further affirmed: “We are also encouraged by the continued rise in new unit holders, which signals widening participation in capital markets. As we move further into the year, the focus will remain on improving investor awareness, enhancing product accessibility and ensuring that disciplined fund management continues to deliver long-term value to investors.” The UTASL is the representative body for the country’s licensed fund management companies, dedicated to upholding the highest standards of professionalism, integrity and transparency across the industry. Consisting of 16 member companies regulated by the Securities and Exchange Commission of Sri Lanka (SEC), the UTASL aims to popularise unit trusts and encourage Sri Lankans to prioritise long-term and professionally guided investing, in addition to short-term savings, whilst contributing to national economic growth.
Unit trust industry closes 2025 with Rs. 587 Bn assets under management
The unit trust industry of Sri Lanka reported a 7.8% year-over-year growth of its assets under management (AUM) to Rs. 587 Bn by the end 2025. During the year, the AUM reached a high of Rs. 613 Bn, indicating continued interest in the asset category. These assets are currently managed across 86 funds by 16 management companies. While fixed-income funds accounted for the largest share of AUM, equity-related funds saw strong inflows, increasing by Rs. 30 Bn in 2025 compared to just Rs. 2 Bn for fixed-income funds. This reflects improved investor sentiment, with a clear shift from a capital preservation mindset toward long-term capital growth. The year also saw a move from ultra-safe short-term instruments to medium-term growth, with strong inflows into open-ended income funds, open-ended equity index/sector funds, and balanced funds, accompanied by a decline in inflows to money-market funds. Additionally, open-ended growth funds (equity) recorded a 79% year-over-year increase, signalling a rising risk appetite among investors. In December, the number of unit holders grew by a further ~2.0% year-over-year. The industry added 30,485 new unit holders during the year, bringing the total number of unit holders to 143,976, up 25.4% year-over-year. Commenting on the full-year industry performance, Secretary of the Unit Trust Association of Sri Lanka (UTASL) and Director/CEO of Senfin Asset Management Jeevan Sukumaran noted: “Post-economic crisis, the unit trust industry has been on a strong upward trend with the AUM surpassing Rs. 600 Bn last year. The steady growth of the unit trust industry in 2025 is a strong indication of increasing investor confidence in professionally managed and well-regulated investment products. Beyond the growth in fund flows, we have also seen encouraging progress in expanding the investor base — not only in terms of unit holder numbers, but also in the broadening of investor demographics — reflecting a gradual shift towards long-term, market-linked investing.” He further added: “Looking ahead to 2026, the UTASL will continue to prioritise investor education, industry collaboration and engagement with regulators to further strengthen transparency, governance and accessibility. We believe that these efforts will be critical in positioning unit trusts as a mainstream investment solution that supports both individual financial goals and the broader development of Sri Lanka’s capital markets.” The UTASL is the representative body for the country’s licensed fund management companies, dedicated to upholding the highest standards of professionalism, integrity and transparency across the industry. Consisting of 16 member companies regulated by the SEC, the UTASL aims to popularise unit trusts and encourage Sri Lankans to prioritise long-term and professionally guided investing, in addition to short-term savings, whilst contributing to national economic growth.
Growing investor participation fuels unit trust industry performance
The unit trust industry of Sri Lanka reported a 16.5% year-over-year growth of its assets under management (AUM) to Rs. 597 Bn by the end of November 2025. These assets are currently managed across 85 funds by 16 management companies. Industry AUM continues to be bolstered by strong inflows into equity-related funds, which recorded Rs. 3.4 Bn in new funds during the month. Additionally, the industry saw 2,945 new unit holders invest in the market in November, with a total of 27,720 new investors added year-to-date. This indicates a growing familiarity and acceptance of unit trusts as an alternative investment tool among investors. As of end-November, the total number of unit trust investors in the market stood at 141,252, up approximately 25.0% year-over-year. Speaking recently of the unit trust industry, Chairman of the Securities and Exchange Commission of Sri Lanka (SEC) Prof. Hareendra Dissabandara spoke of the importance of unit trusts in deepening Sri Lanka’s capital markets by enabling wider public participation through accessible, well-regulated and professionally managed investment options. “Unit trusts open the door for ordinary citizens — even those with small savings — to become investors. This builds financial inclusion, encourages savings to flow into productive investments, and ultimately strengthens our capital market and national economy,” he stated. He further reiterated: “Every investment carries some risk, but unit trusts are one of the safest ways to invest in the market. They are regulated by the SEC and held under the custody of independent trustees — often banks — who ensure that your money is not misused. The funds are required to disclose their performance regularly, so investors can see how their money is growing. Transparency and accountability are built into the system.” Commenting on the industry results, Vice President of the Unit Trust Association of Sri Lanka (UTASL) and CEO of First Capital Asset Management Limited Kavin Karunamoorthy noted: “We are extremely encouraged to see the upward direction the industry has been heading in this past year. However, we believe there is more to be done. With the recent success of our ‘Investor Awareness Initiative’ held in October, we continue to remain focused on strengthening financial literacy and investor participation across the country in unit trusts.” He further added: “These efforts are carried out in collaboration with the SEC and Colombo Stock Exchange (CSE), and we believe the recently launched ‘A Share for Each – A Unit for Everyone’ national initiative by the SEC to promote the industry will help activate and grow the investor base further.” The UTASL is the representative body for the country’s licensed fund management companies, dedicated to upholding the highest standards of professionalism, integrity and transparency across the industry. Consisting of 16 member companies regulated by the SEC, the UTASL aims to popularise unit trusts and encourage Sri Lankans to prioritise long-term and professionally guided investing, in addition to short-term savings, whilst contributing to national economic growth.
Unit trust industry sees strong investor activity in October 2025
The unit trust industry of Sri Lanka reported a 16.0% year-over-year growth of its assets under management (AUM) to Rs. 603 Bn by the end of October 2025. This is also up from Rs. 592 Bn in September. These assets are currently managed across 85 funds by 16 management companies. The industry saw 3,628 new unit holders invest in the market during the month, bringing the total number of investors to 137,224 as of end October. Year-to-date, the industry has added nearly 25,000 new investors. October also saw an influx of approximately Rs. 4 Bn into equity-related funds. This reflects investors’ continued confidence in the growth potential of Sri Lanka’s capital markets and a growing appetite for long-term wealth creation through diversified investment portfolios, indicating a gradual shift away from traditional savings-focused methods. Speaking of the industry performance, Unit Trust Association of Sri Lanka (UTASL) President and CEO of JB Financial, Christine Dias Bandaranaike, CFA, noted that “the industry has performed remarkably in 2025 with AUM surpassing the Rs. 600 Bn mark earlier this year. We continue to see strong potential for market growth, driven by increasing investor awareness and a broader range of fund offerings.” She further added: “Our recently concluded ‘Investor Awareness Initiative’ held from the 27th to 31st of October, which aimed to educate the public to build wealth through unit trusts, was a great success. Sixteen management companies participated in the event, each bringing their unique expertise and commitment to wealth building. As a part of the UTASL’s ongoing efforts to promote unit trusts, the initiative reinforced the importance of informed investing, bringing in both new and existing investors to make confident, long-term investment decisions.” Together with the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), the UTASL remains focused on strengthening financial literacy and investor participation across the country – particularly in unit trusts. While pooled funds are one of the most widely used and trusted investment tools globally, awareness and participation among Sri Lankan investors remain relatively low. The UTASL is the representative body for the country’s licensed fund management companies, dedicated to upholding the highest standards of professionalism, integrity and transparency across the industry. Consisting of 16 member companies regulated by the SEC, the UTASL aims to popularise unit trusts and encourage Sri Lankans to prioritise long-term and professionally guided investing, in addition to short-term savings, whilst contributing to national economic growth.