The Sri Lankan unit trust industry held steady during April 2026, amidst ongoing global geopolitical and economic uncertainties, and the resulting market volatility seen in the past few months. The industry reported assets under management (AUM) of Rs. 589 Bn, which is flat compared to March and down just 2.3% year-over-year. These assets are held across a diverse portfolio of 87 funds managed by 16 fund management companies.

Equity-related funds continued to see strong fund flows, with funds up 91.7% year-over-year to Rs. 61 Bn, and up 9.0% since March. Fixed income funds declined by ~10.0% year-over-year and have remained flat since March.

Despite market uncertainties, the number of unit trust investors remained largely unchanged at 154,250 since March, and up 26.6% year-over-year. During April, the industry added 3,357 new unit holders, mainly to equity-related funds. This is a 56.6% growth over last year, and a 12.1% increase over March.

Commenting on the April industry results, Vice President of the Unit Trust Association of Sri Lanka (UTASL) and CEO of First Capital Asset Management Limited, Kavin Karunamoorthy, stated: “Over the past few months, unit trusts have offered investors a more balanced approach to investing, enabling them to withstand the recent market volatilities. Additionally, flows into equity-related funds held steady during the month, including medium to longer-term investment options, confirming that investors continue to focus on capital preservation and long-term wealth creation.”

He further noted: “We encourage investors to remain focused on their long-term financial goals and not be deterred by short-term volatility arising from either global developments or domestic market events. Unit trusts are structured to help investors navigate such volatility through diversification, supported by professional fund managers. To this end, we continue to create greater awareness of industry products, including providing access to well-managed and innovative investment solutions 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.