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From Saver to Investor: A Sri Lankan perspective

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Christine Dias Bandaranaike, CFA Charterholder since 1999, brings over 15 years of experience in both locally and internationally. As the current President of UTASL, she has been at the forefront of a remarkable transformation in Sri Lanka’s unit trust industry.

In the early 1990, my mother, then a young widow, took a bold step. She sent me, her only child, to university overseas. When questioned about how she funded my undergraduate education, she revealed that she had done so without taking bank loans.

Instead, with remarkable foresight, through a combination of prioritizing shrewd saving and compounding interest, she was able to use her main source of income (rental income) to cover the full cost of tuition and living expenses. By the end of the period, her savings were depleted entirely. However, given the high levels of interest rates in Sri Lanka during the 1990s, together with resets of rent, she was, with time, able to restore her savings to a comfortable level, enabling her to face retirement cheerfully. I admire my mother’s financial acumen, which perhaps influenced my career choice and desire to help others succeed financially.

However, we now live in a different era of interest rates. Widows of the 2020s would struggle to replicate this path. The early 2020s saw skyrocketing inflation and severe erosion of purchasing power, in addition to currency depreciation. Those on a fixed income, such as pensioners, were the hardest hit.

However, since the implementation of the 2023 Central Bank Act, we have seen inflation in Sri Lanka become more stable and predictable. The byproduct of this change is that Sri Lanka, traditionally a nation of savers, will instead transition into a nation of investors and spenders. The booming stock market of late 2024 and 2025, fueled by lower interest rates, is evidence of this shift. Today, young investors are no longer content to only look at fixed deposits and are actively looking to educate themselves on alternative investment opportunities. Sri Lankans are becoming more conscious of the after-tax return of fixed deposits, a realisation they didn’t need to have ten years ago.

The Role of Unit Trusts

The unit trust industry is witnessing the start of this shift. Over the past five years, the number of unit trust investors in Sri Lanka has more than doubled. Assets under management have grown by 172% from 2020 to the end of 2024. The public is gradually coming to realise that the old model of being rewarded for being a passive earner of interest income is no longer working. It is essential to move forward from being a saver to being an investor. To do so, prudent savings habits and education on the financial risks of capital market products are critical.

Why unit trusts?

Today, the demands of life are such that most people put off investing simply because it seems complicated and they don’t feel they have sufficient time to understand properly. Hesitation to act is a normal human instinct. However, the real risk is if the investment decision is never made.

Unit trusts allow savers and investors to simplify. Unit trust investing is accessible to all.

1. Many unit trusts allow starting with as little as Rs. 10,000.

2. Investments within the trust are spread across different investments, providing diversification and reducing the risk of any single loss or default.

3. Licensed professionals make decisions on behalf of investors, using research and market expertise.

4. Many unit trusts are liquid, allowing withdrawal without penalty within a few days.

5. All unit trusts are regulated by the Securities and Exchange Commission of Sri Lanka (the SEC) and are operated through a trustee who monitors day-to-day investment activities against the trust deed.

6. A custodian receives all inflows from unit holders and holds them in the name of the unit trust, separate from the management company.

In short, low barriers to entry, high flexibility, and professional management are some of the best reasons to use unit trusts to start your journey into investing.

How to choose the right fund.

The Unit Trust Association recommends looking at five things:

Your risk tolerance – how much ups (or downs) can you accept?

Your time horizon – when will you need to access this money?

Past performance – look at trends over the past five years, not just the latest returns.

Cost structure – know the fees you will pay on a unit trust.

Credibility – learn a little bit about the background and strategy of the management company

Time to act

If you are already a disciplined saver, you have already done the most challenging part. Now, take the next step.

Start small. Start now. Let your money work for you.

Investing isn’t speculation. It’s a plan – a way to turn the same rupees you have been protecting into something bigger.

In today’s Sri Lanka, saving alone will keep you safe.

Investing will help you move forward.



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Global regulators convene in Colombo for key IOSCO enforcement and cooperation discussions

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Dignitaries at the wide-ranging discussions.

The Securities and Exchange Commission of Sri Lanka (SEC) successfully hosted a series of high-level meetings of the International Organization of Securities Commissions (IOSCO), bringing together leading securities regulators and enforcement officials from around the world to discuss emerging regulatory challenges, strengthen international cooperation, and enhance collective efforts to combat cross-border securities market misconduct.

The meetings, held at the Hilton Colombo from 13 to 16 October 2026, included sessions of the IOSCO Enforcement and Cooperation Committee and its Screening Group (Committee 4/SG), as well as meetings of the Monitoring Group and the Steering Committee. The event attracted approximately 50 senior representatives from securities regulators and exchanges across several jurisdictions, including Australia, Japan, the United States, the United Kingdom, France, Italy, Canada, New Zealand, India, Germany, Belgium, Singapore, China and Spain, reflecting the global significance of the discussions and the growing importance of international regulatory collaboration.

Welcoming delegates to Sri Lanka, Senior Professor D.B.P.H. Dissabandara, Chairman of the SEC, emphasized the critical role of international cooperation in safeguarding market integrity and investor confidence in an increasingly interconnected financial landscape.

“No regulator can effectively address cross-border misconduct in isolation. The speed with which information, transactions and illicit activities can move across borders requires an equally coordinated and timely regulatory response. Strong international cooperation, effective information sharing and mutual trust among regulators are essential to maintaining fair, transparent and resilient capital markets,” he stated.

The discussions focused on a range of enforcement and cooperation matters, including mechanisms for enhancing cross-border information exchange, strengthening investigative collaboration among regulators, addressing increasingly sophisticated forms of securities fraud and market abuse, and promoting the effective implementation of international standards and best practices. Participants also exchanged experiences and insights on emerging enforcement challenges arising from technological developments, digitalization of financial services, and increasingly interconnected global markets.

IOSCO is recognized as the leading international body that brings together the world’s securities regulators and serves as the global standard setter for securities regulation. Through its policy work and cooperative initiatives, IOSCO plays a central role in promoting investor protection, ensuring that markets are fair, efficient and transparent, reducing systemic risk, and strengthening confidence in capital markets worldwide.

Sri Lanka has maintained a strong and active relationship with IOSCO for more than three decades. The SEC became an Ordinary Member of IOSCO in 1993 and has been a signatory to the IOSCO Multilateral Memorandum of Understanding (MMoU) since 2004. The MMoU is the internationally recognised benchmark for cooperation and information sharing among securities regulators and serves as a critical tool in facilitating cross-border investigations and enforcement actions.

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Pan Asia Bank partners Ideal Motors to offer leasing solutions

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Representatives of both parties are seen exchanging the agreement (Standing from left to right) Officials from Ideal motors: Trevene Ferdinand, AGM - Corporate/Tender; Dinesh Manage, Business Development Manager; Kasun Fernando, General Manager - Commercial Vehicles; Nimisha Welgama, Director – Legal and Corporate Affairs; Officials from Pan Asia Bank: Naleen Edirisinghe, Director/CEO; Yohan Ebell, Head of Retail Credit; Sudharshana Hettiarachchi, Officer in Charge – Leasing; and Kanchana Kannangara, National Sales Manager – Leasing.

Pan Asia Bank recently entered into a one-year Memorandum of Understanding (MOU) with Ideal Motors (Pvt) Ltd, creating a new financing avenue for customers purchasing vehicles from the authorised Mahindra dealer. The strategic partnership will enable customers of Ideal Motors to access leasing facilities from Pan Asia Bank, making vehicle financing more convenient while supporting their mobility and business requirements. The agreement also provides an opportunity for the Bank to expand its leasing portfolio and strengthen its presence in Sri Lanka’s vehicle financing market.

Ideal Motors is the authorised dealer for the Mahindra vehicle range in Sri Lanka, including the Mahindra Bolero CPU Truck and Scorpio Jeep/Pickup. The vehicles cater to a range of requirements, from commercial and business applications to personal mobility, making accessible financing an important part of the purchasing decision.

The Bank’s vehicle leasing facilities are designed to simplify the financing process, with convenient repayment options and professional support to help customers select a solution suited to their requirements. For customers, the arrangement brings vehicle selection and financing closer together, reducing the need to navigate the two processes separately.

“Our partnership with Ideal Motors enables us to bring financing closer to customers at the point of vehicle purchase. We remain focused on providing convenient and flexible leasing solutions that support both personal mobility and the needs of businesses,” said Naleen Edirisinghe, Director/CEO of Pan Asia Bank.

Pan Asia Bank and Ideal Motors will work closely during the one-year partnership to maximise business opportunities and deliver a seamless financing experience to customers. The collaboration is expected to strengthen both organisations’ ability to respond to demand for commercial and personal vehicles while creating greater value for customers.

Yohan Ebell, Head of Retail Credit, Pan Asia Bank, said: “Through this partnership, we aim to make vehicle financing simpler and more accessible, with leasing solutions designed to meet the varied requirements of Ideal Motors’ customers.”

The collaboration also reflects Pan Asia Bank’s commitment to building partnerships that make financial services more accessible and responsive to the needs of individuals and businesses.

Pan Asia Bank has established a growing presence in vehicle financing, offering leasing solutions designed around customer convenience and flexibility. Its leasing proposition is supported by a nationwide branch network and a customer-focused approach, enabling customers to obtain guidance on financing options while completing their vehicle purchase.

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Heritance Hotels and Resorts secures four wins at World Travel Awards 2026

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Heritance Hotels and Resorts has secured four distinguished titles at the World Travel Awards 2026, with three national awards recognising its Sri Lankan properties and an international title for Heritance Aarah in the Maldives.

The three Sri Lankan titles recognise Heritance Tea Factory as Sri Lanka’s Leading Heritage Hotel 2026, Heritance Ahungalla as Sri Lanka’s Leading Luxury Hotel 2026, and Heritance Kandalama as Sri Lanka’s Leading Wedding Hotel 2026. Heritance Aarah was named the Indian Ocean’s Leading All-Inclusive Resort 2026.

Internationally recognised within the global travel and tourism industry, the World Travel Awards celebrate excellence across hotels, resorts, and destinations. Recognition at this level affirms the quality, distinctiveness, and consistency of the experiences delivered by Heritance Hotels and Resorts.

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