Nearly 17,000 new investors fuel unit trust industry’s growth in 2025

Sri Lanka’s unit trust industry has recorded significant momentum so far this year, attracting 16,972 new unit holders, who have collectively invested Rs.56.4 billion, Securities and Exchange Commission (SEC) Chairman Senior Professor Hareendra Dissabandara revealed yesterday.
Speaking at an investor awareness initiative launch by the Unit Trust Association of Sri Lanka (UTASL), Prof. Dissabandara highlighted that this year’s growth is part of a broader, powerful trend. According to the data from the UTASL, the total number of unit holders grew by 119 percent between 2020 and 2024, while total assets under management (AUM) surged by 172 percent from Rs.201 billion to Rs.547 billion over the 
same period.
The industry’s total AUM now stands at approximately Rs.601 billion, managed across 95 different funds by 16 management companies. This compares to just 75 funds five years ago.
Despite the strong growth, Prof. Dissabandara delivered a stark message about the industry’s failure to reach the mass market. He described the current total of 134,876 investors as a “joke” in a nation of 22 million people.
He lamented that unit trusts, originally designed as a “path for the poor to become wealthy”, are now predominantly used by the affluent, Colombo-based investors.
“We hoped to see people from distant villages investing and building wealth. Instead, we see the rich getting richer,” he stated.
Prof. Dissabandara urged the media and industry players to take the message of wealth creation to the rural masses, calling it a “national duty”. He contrasted the low interest rates from banks, which he put at 2-5 percent, with the high-yield returns from the capital markets.
“Why should people stay with 2-5 percent? Some funds gave returns of over 50 percent last year. The stock market itself grew by 49.7 percent,” he argued. 
He promoted unit trusts as the ideal vehicle for busy individuals, offering a professionally managed portfolio without the “headache” and stress of actively trading stocks. Prof. Dissabandara also clearly defined the SEC’s dual role in the industry’s future.
On the one hand, he positioned the SEC as a “partner” in promoting the industry and supporting awareness campaigns like the UTASL’s.
On the other hand, he issued a stern warning on regulation, emphasising the SEC’s primary duty is investor protection.
“We are partners but we have not forgotten our ‘policeman’s duty’,” Prof. Dissabandara said. 
“We will help you grow but we will not hesitate to act. Do not get caught doing the wrong thing. All 16 management companies must act in a way that does not harm investor interest. We will be firm in protecting investor rights.” (NF)