The Unit Trust industry closes 2025 with Rs. 587 Bn assets under management

The 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 of 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. For more information on unit trusts and to connect with management companies, visit www.utasl.lk.