The unit trust industry of Sri Lanka reported a 6.1% year-over-year growth of its assets under management (AUM), crossing the Rs. 600 Bn mark by the end of January 2026. Furthermore, AUM was up 3.8% since December 2025. These assets are currently managed across 84 funds by 16 management companies.

AUM was driven primarily by equity-related funds, which doubled to Rs. 67 Bn from the prior year, while also growing by a rapid 10.2% since December 2025. Fixed income funds, on the other hand, grew by 2.9% year-over-year. The continued growth in equity-related funds reflects positive investor sentiment and a willingness to participate in the strong capital market performance seen over the past two years, as investors increasingly seek long-term capital appreciation.

The industry saw 3,110 new unit holders invest in the market in January, up 35.0% year-over-year, bringing the total number of unit trust investors to 147,020, which represents a 25.7% year-over-year increase. This growth reflects the continued efforts of the Unit Trust Association of Sri Lanka (UTASL) and regulators to enhance awareness, accessibility and confidence in relation to unit trust investments.

Commenting on the January industry results, Treasurer of the UTASL and CEO - Unit Trusts & Head of Equities at LYNEAR Wealth Management, Asanka Herath noted: “The industry’s performance in January reflects a healthy start to 2026, supported by sustained inflows into equity-related funds and steady overall expansion of assets under management. This trend suggests that investors are becoming more deliberate in their allocation strategies, seeking growth opportunities while maintaining diversified exposure through professionally managed funds.”

He further affirmed: “We are also encouraged by the continued rise in new unit holders, which signals widening participation in capital markets. As we move further into the year, the focus will remain on improving investor awareness, enhancing product accessibility and ensuring that disciplined fund management continues to deliver long-term value to investors.”

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 Securities and Exchange Commission of Sri Lanka (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.