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

Wednesday, 21 January 2026 00:10 - - {{hitsCtrl.values.hits}}

The Unit Trust industry of Sri Lanka reported a 7.8% year-over-year growth of its assets under management (AUM) to Rs. 587 billion by the end of 2025. During the year, the AUM reached a high of Rs. 613 billion, 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 billion in 2025 compared to just Rs. 2 billion 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% 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.

Unit Trust Association of Sri Lanka (UTASL) Secretary and Senfin Asset Management Director/CEO Jeevan Sukumaran said: “Post-economic crisis, the unit trust industry has been on a strong upward trend with the AUM surpassing Rs. 600 billion 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.”