‘How to protect your wealth from rising inflation with Unit Trusts and diversification’

In recent years, Sri Lankans have seen how unpredictable the economy can be. Simply putting money into a savings account will not help your savings to grow.

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The latest Colombo Consumer Price Index (CCPI) for May 2026 shows inflation reached 5.5% in May, up from 5.4% in April. Food prices increased by just 0.9% in May, but non-food costs jumped to 7.8%. While this increase was mostly because local energy prices went up due to ongoing tensions in the Middle East, the point is that most savings accounts will not pay you 5.5%.

What is the outcome? When prices rise quickly, savers lose some spending power. Your spending on essentials like housing, electricity, gas and transport that cost Rs. 1,000 today will cost 5.5% more tomorrow, but the interest you earn keeping the Rs. 1,000 in your savings account will not be enough to cover that increase. While experts think inflation will stay above 5% for some time, even fixed deposit interest, after tax, may not offer much of a solution.