Unit Trusts for all – building a nation of investors

Many people are still not familiar with the term 'Unit Trust'.

- An interview with Securities and Exchange Commission of Sri Lanka Chairman Senior Prof. Hareendra Dissabandara.

Could you start by explaining what a Unit Trust is in simple terms?A Unit Trust is a simple way for people to invest their money collectively. Instead of trying to buy shares or bonds on your own, you join together with thousands of other small investors. Your money is pooled and managed by professional fund managers who invest it in different assets such as company shares, government securities, and other financial instruments.

Each investor owns "units" in this fund – just like owning a small portion of a large paddy field. When the field produces a harvest, everyone gets a share according to the size of their portion. That's the basic idea of a Unit Trust.

Why do you think Unit Trusts are important for a country like Sri Lanka, especially for rural and low-income communities?

Unit Trusts open the door for ordinary citizens – even those with small savings – to become investors. In Sri Lanka, many people keep money idle in banks or informal schemes that don't give real returns.

Through Unit Trusts, a farmer, teacher, or small business owner can invest even a few thousand rupees and enjoy the same benefits as a large investor. This builds financial inclusion, encourages savings to flow into productive investments, and ultimately strengthens our capital market and national economy.

Some call this initiative a 'national program to make the poor rich'. Do you see it that way?

I would say it's not just about making the poor rich – it's about giving everyone a fair chance to grow. It's a national empowerment program designed to make every Sri Lankan a participant in the country's economic journey.