Equity inflows lift unit trust assets to Rs. 609bn in February

Sri Lanka’s unit trust industry held steady in February, with assets under management (AUM) inching up to Rs. 609 billion.

The industry recorded a 4.0 percent year-on-year growth in AUM, while remaining broadly flat month-on-month, with assets spread across 85 funds managed by 16 licensed companies. 

Growth was largely underpinned by stronger inflows into equity-linked funds, which doubled from a year earlier to Rs. 68 billion, even as fixed income funds contracted by 4.4 percent over the same period.

The data points to a gradual but notable shift in investor behaviour since 2025, with capital moving away from short-term money market instruments towards medium- to long-term options. Open-ended income funds, equity index and sector funds, and growth-focused equity funds have seen rising interest, reflecting a more balanced allocation strategy among investors.

Investor participation also continued to expand, with 2,623 new unit holders added during the month ,  a 69.8 percent year-on-year increase ,  bringing the total investor base to 149,573, up 26.4 percent from a year earlier.

“The industry’s performance as at end-February 2026 reflects a degree of consistency, with continued activity in equity-related funds,” said Jeevan Sukumaran, President of the Unit Trust Association of Sri Lanka (UTASL) and Director/CEO of Senfin Asset Management. 

“We are also observing a gradual shift towards more balanced investment allocations across fund categories.”