Sri Lanka's unit trust industry sees widening investor base despite asset value contraction

UNITHOLDERS GREW TO 126,837, A NOTABLE 17.6 PERCENT INCREASE FROM 107,876 RECORDED A YEAR EARLIER

- By NISHEL FERNANDO

Sri Lanka's unit trust industry has demonstrated a significant expansion in its investor base over the past year, a positive indicator for financial inclusion and capital market depth. However, the total net asset value (NAV) of funds under management saw a decline.

As of June 30, 2025, the number of unitholders grew to 126,837, a notable 17.6 percent increase from 107,876 recorded a year earlier, signalling growing investor confidence and market participation, according to the Unit Trust Association of Sri Lanka.

However, the industry's total NAV contracted to Rs. 409.55 billion by the end of June 2025, down from Rs.571.46 billion in June 2024. This decline in asset value comes amid a shifting performance landscape for some of the country's largest funds.