SEC introduces new categorisation framework for unit trusts

The Securities and Exchange Commission of Sri Lanka (SEC) last week directed all Managing companies and trustees of Collective Investment Schemes (CIS) to adopt a new categorisation structure for unit trusts, to standardise the fund classification across the industry.

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The directive, issued under Sections 16(c) and 16(d) of Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021, was approved at the SEC's 522nd meeting held on September 16, 2025.

Under the new framework, the unit trusts will be categorised into seven types: Growth, Balanced, Income, Money Market, Gilt, Index and Sector Specific Schemes, each defined by distinct investment objectives and strategies.