Sri Lanka’s unit trust industry has entered 2026 with measurable momentum, as assets under management climbed past Rs. 600 billion in January, marking a 6.1% year-on-year expansion and a 3.8% increase from December levels.
According to the Unit Trust Association of Sri Lanka, the growth has been propelled largely by equity-related funds, whose AUM doubled to Rs. 67 billion compared with the previous year. A sharp 10.2% month-on-month rise underscores sustained investor interest in capital market exposure following two years of strong stock performance.
In the short term, this shift has important implications. Rising allocations to equity funds enhance liquidity within the Colombo market, potentially supporting valuations and trading volumes. Collective investment vehicles also allow smaller investors to access diversified portfolios, distributing risk more efficiently than direct share purchases.
Investor participation figures reinforce this trend. The industry attracted 3,110 new unit holders in January up 35% year-on-year lifting the total to 147,020 investors, a 25.7% increase. Broader participation strengthens domestic savings mobilisation, an essential component of economic recovery and private sector capital formation.
Nevertheless, analysts caution that short-term market optimism can expose inexperienced investors to volatility if conditions reverse. Sustained performance will depend on disciplined portfolio management and regulatory vigilance by the Securities and Exchange Commission of Sri Lanka.
For now, the data point to rising confidence in professionally managed funds and an evolving investment culture that increasingly favours long-term wealth accumulation over passive savings.
Unit Trust Assets Cross Rs. 600 Billion
Sri Lanka’s unit trust industry has exceeded Rs. 600 billion in assets under management, recording 6.1% year-on-year growth in January 2026.
The Unit Trust Association of Sri Lanka said equity-related funds led the expansion, doubling to Rs. 67 billion, while total investor numbers rose 25.7% to 147,020.
Regulated by the Securities and Exchange Commission of Sri Lanka, the sector continues to attract new participants amid stronger capital market performance.