ආයෝජන උපකරණ

Regulation of Collective Investment Schemes in Sri Lanka

The Rules in respect of Collective Investment Schemes which is known as the “CIS Code” was published in the Gazette Extraordinary bearing Number 2278/2 and dated 07 May 2022 following the enactment of the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021.

A Managing Company means the Managing Company of a Scheme licensed by the Commission under the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021. The Rules in respect of Managing Companies is governed under the Market Intermediaries Rules issued in the Gazette Extraordinary bearing Number 2271/09 dated 15 March 2022. In addition, every Managing Company shall comply with the provisions of the CIS Code, provisions of the SEC Act, directives issued from time to time by the Commission and Rules issued by the Commission relating to Fitness and Propriety of a Key Management Person of a Market Intermediary.

An entity shall not engage in the function of a Managing Company of a CIS without having first obtained a licence from the Commission. The grant of a licence to a Managing Company is a two tier process. An applicant may in the first instance apply for in-principal approval upon satisfying the required specified in the applicable Rules and thereafter no later than six months from the date of obtaining in-principal approval, the applicant is required to fulfil further requirements and submit the required documents as proof thereof in order to obtain the licence.

In order to establish, manage, operate and market a CIS, a Managing Company shall obtain the prior written approval of the Commission. Accordingly in doing so a Managing Company shall comply with the provisions contained in the CIS Code. In establishing, managing, operating and marketing a CIS, a Managing Company shall ensure that: (a) the Trustee and the Managing Company are separate persons; (b) the Custodian and the Managing Company are separate persons; (c) the Trustee is not a related Person of the Managing Company; (d) the Key Investor Information Document (KIID) (and any amendments thereto) has been approved by the commission; (e) the Trustee has been approved by the Commission; (f) approval of the Trustee has been obtained for the KIID; and (g) the Trust Deed between the Managing Company and the Trustee has been approved by the Commission.

A Managing Company and all individuals who deal with unit holders of the CIS is required to: (a) ensure that transactions carried out on behalf of the CIS are in accordance with the objectives, investment strategy, investment parameters, risk profile and other provisions contained in the KIID, the SEC Act, these Rules and the CIS code; and (b) refrain from intentionally carrying out transactions (cross trades) between its own accounts, personal accounts of its employees, private portfolio accounts and the CIS.

Licensed Market Intermediaries under the Category of Managing Companies of Unit Trusts as at 31 December 2023

  1. Arpico Ataraxia Asset Management (Private) Limited
  2. Asia Securities Wealth Management (Pvt) Ltd
  3. Asset Trust Management (Pvt) Ltd
  4. Assetline Capital (Pvt) Ltd
  5. Capital Alliance Investments Ltd
  6. Ceybank Asset Management (Pvt) Limited
  7. Ceylon Asset Management Company Limited
  8. CT CLSA Asset Management (Private) Limited
  9. First Capital Asset Management Limited
  10. Lynear Wealth Mnagement (Pvt) Ltd
  11. J B Financial (Pvt) Ltd
  12. National Asset Management Limited
  13. NDB Wealth Management Limited
  14. Premier Wealth Management Ltd
  15. Senfin Asset Management (Pvt) Ltd
  16. Softlogic Asset Management (Pvt) Ltd

Unit Trust on Sri Lanka Real Estate Investment Trusts (SL-REITs)

The Rules made by the Commission in respect of the Unit Trust Code for Sri Lanka Real Estate Investment Trusts, No. 1 of 2020 (REITS) published in the Government Gazette (Extraordinary) bearing no. 2186/29, dated July 31, 2020 shall continue to apply in respect of REIT’s. SL-REITs are an alternative investment scheme, which offers investors an opportunity to invest in the real estate asset class without having to make direct investments in property. A SL-REIT is a portfolio of investments in property created by investing funds subscribed by investors through the purchase of units of a SL-REIT.


Sinhala