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The absence of Video Assistant Referee (VAR) technology at the preliminary stage of the ongoing 15th SAFF Football Tournament has sparked widespread disappointment among participating teams, with several questioning the fairness of officiating in this prestigious regional competition.

Several crucial decisions during the matches already played could potentially have gone in favour of the respective teams that had either lost or drawn their matches, had VAR technology been available. Sri Lanka was among the sides believed to have suffered as a result, with a number of contentious decisions going against them during their opening match against Bhutan.

Reliable sources indicate that financial constraints may have been the reason behind the decision not to introduce VAR, leaving participating nations questioning why such an important facility was overlooked at a major regional tournament.

Football circles have also expressed concern over the omission, pointing out that VAR has become an essential feature of modern football, helping officials minimise human errors and ensure greater fairness and credibility in the game.

Sri Lanka Head Coach Abdullah Al Mutairi, whose side was also affected by the absence of the technology, voiced his disappointment over the situation.

‘It is very unfair to conduct a tournament of this nature without VAR, particularly at a regional competition of this standard. The whole world is now using this technology, with increasingly advanced systems, making football fairer and more entertaining,’ Al Mutairi said.

‘I feel we missed at least one penalty among several important decisions. If the organisers were unable to provide VAR from the preliminary stage, they should perhaps not have conducted the tournament and instead allowed the teams to play international friendlies. Nevertheless, we also missed several scoring opportunities, and the much-needed luck was not on our side,’ he added.

The controversy has raised serious questions over the tournament’s technical arrangements, with participating teams believing that the introduction of VAR would have helped protect the integrity of the competition and reduce the impact of costly refereeing errors.

As Sri Lanka’s unit trust industry evolves, strengthening financial literacy, awareness of regulated investment options and investor confidence is essential to building a more informed investment culture.

In this article, First Capital Holdings PLC Chief Risk Officer and Data Protection Officer Kapila Perera examines the shared role of Government, regulators and industry in shaping the future of the sector. He highlights the importance of financial literacy and greater awareness of regulated investment avenues in enabling informed investment decisions and building a nation of informed investors.

Building a nation of investors, not speculators

Sri Lanka’s Unit Trust industry has made significant strides over the past decade, emerging as one of the country’s most well-regulated and accessible investment avenues for retail investors. Through professionally managed portfolios, investors are able to access diversified investment opportunities within a framework governed by the Securities and Exchange Commission of Sri Lanka (SEC), independent trustees and the Collective Investment Scheme (CIS) Code of 2022.

The industry’s growth trajectory has been encouraging. By the end of 2025, Assets Under Management (AUM) had reached approximately Rs. 587 billion, spread across 86 funds managed by 16 licensed fund management companies. Investor participation has also expanded considerably, with the number of unit holders increasing by over 25% during the year to nearly 144,000 investors. These developments reflect growing public confidence in professionally managed and regulated investment products.

However, when viewed against the broader financial landscape, it becomes evident that the industry has only begun to tap into its true potential.

Sri Lanka’s banking sector held approximately Rs. 17.8 trillion in deposits by the end of 2025. In comparison, the entire Unit Trust industry represented only about 3.3% of this deposit base. Put differently, for every Rs. 100 held in bank deposits, only around Rs. 3.30 has been invested through Unit Trusts. This suggests that while Unit Trusts have gained momentum, a substantial proportion of household savings continues to remain concentrated on traditional deposit products.

A comparison with India demonstrates the scale of the opportunity that exists.

India’s mutual fund industry, which operates on similar principles to Sri Lanka’s Unit Trust industry, has experienced remarkable growth over the past decade. Supported by strong regulatory oversight, investor education initiatives, digital accessibility and sustained market development efforts, India’s mutual fund assets grew to approximately ? 65.7 lakh crore by March 2025. During the same period, the Indian banking sector held approximately ? 253.8 lakh crore in deposits.

As a result, mutual fund assets in India now represent nearly 26% of total bank deposits, compared to only 3.3% in Sri Lanka. The gap is significant. While Sri Lanka’s Unit Trust industry is progressing steadily, India’s experience illustrates the potential that can be unlocked when household savings are gradually channeled towards regulated investment products and long-term wealth creation.

The comparison should not be viewed as a criticism of Sri Lanka’s progress. Rather, it highlights the considerable untapped potential that remains within the local market. Even a modest shift of household savings from traditional deposit accounts into regulated collective investment schemes could significantly increase the size and depth of Sri Lanka’s capital markets while providing investors with greater opportunities for long-term wealth accumulation.

The challenge is therefore not the absence of investment products, regulatory support or professional expertise. Instead, the more fundamental challenge is financial literacy and investor awareness.

Many Sri Lankans remain unfamiliar with the benefits, safeguards and regulatory protections offered by Unit Trusts. At the same time, some investors continue to be attracted to unauthorised investment schemes and unrealistic promises of high returns, often without fully understanding the risks involved. This creates a paradox: despite the availability of regulated and professionally managed investment solutions, large segments of the population continue to place their savings in structures that offer significantly less transparency, oversight and investor protection.

This raises a fundamental question. If regulated investment avenues already exist, why do so many individuals continue to overlook them in favour of schemes that provide limited transparency and, in some cases, expose investors to substantial financial risk?

The answer lies not merely in product availability, but in the need to build a stronger culture of financial literacy, investor education and long-term investing. The future growth of Sri Lanka’s Unit Trust industry will ultimately depend on the country’s ability to transform savers into informed investors and create a financial ecosystem where investment decisions are guided by knowledge rather than speculation.

Financial literacy must become a national priority

Financial literacy should not be viewed solely as the responsibility of financial institutions. It should become part of a broader national effort to equip people with the knowledge to make sound financial decisions.

Many young people enter adulthood without a practical understanding of saving, investing, inflation, risk and return, diversification or the difference between regulated and unregulated financial products. This can leave them vulnerable to misinformation and investment promises that may not withstand scrutiny.

Financial education should therefore be introduced from an early stage and strengthened through schools, universities and community programs. Young people should understand the fundamentals of saving and investing, the role of financial institutions and capital markets, the relationship between risk and return, and the importance of investing through regulated channels.

This education must also extend beyond the classroom. Rural communities and other segments with limited access to financial information require greater attention. Financial literacy needs to reach people where financial decisions are actually being made.

An informed investor is better equipped to question unrealistic returns, understand risk and assess whether an investment opportunity is legitimate.

Regulators have a role beyond warnings

Regulators play a critical role in protecting the public from unauthorised and potentially harmful investment schemes. The Central Bank of Sri Lanka (CBSL) continues to issue public warnings on prohibited pyramid schemes and other unlawful financial activities. Most recently, on 16 September 2026, CBSL issued a public notice relating to unauthorised deposit-taking activities, reinforcing the ongoing need for investor vigilance and public awareness.

However, investor education should extend beyond merely highlighting what to avoid. It should also empower individuals with knowledge of legitimate and regulated investment opportunities available to them.

Unit trusts are one such investment avenue. In Sri Lanka, the Securities and Exchange Commission (SEC) requires a managing company to obtain a license to establish and operate a Unit Trust, also known as a Collective Investment Scheme (CIS), while the trustee must be approved by the Commission. Furthermore, the Collective Investment Scheme Code of 2022 sets out comprehensive requirements governing the establishment, operation and oversight of collective investment schemes, providing an important regulatory framework for investor protection.

Despite these safeguards, many retail investors and savers may not be fully aware of the regulatory protections and governance mechanisms that underpin such investment products.

There is therefore a valuable opportunity for regulators and industry stakeholders to make this information more accessible through simplified educational content, multilingual communication campaigns, digital platforms and outreach programs conducted in collaboration with schools, universities and community organisations.

The objective should be to help individuals understand not only the risks associated with unregulated schemes, but also how regulated investment products operate and how they can form part of a broader financial plan aligned with their investment goals and risk appetite.

In this regard, the SEC’s recent investor awareness campaign, ‘Samata Kotasak, Samata Ekakayak,’ aimed at promoting Unit Trusts and Sri Lanka’s equity market, is a commendable initiative. Such programs should be sustained as national-level efforts to improve financial literacy and broaden participation in regulated investment markets. The Government, regulators and industry participants should collectively support and expand these initiatives to reach communities across the country, thereby fostering a more informed, inclusive and resilient investment culture in Sri Lanka.

Building on the work of the Unit Trust Association

The Unit Trust Association of Sri Lanka has been instrumental in supporting the growth of the unit trust industry, bringing together industry stakeholders and driving greater awareness and understanding of unit trusts. Its continued efforts to promote knowledge, transparency and informed participation have contributed meaningfully to developing confidence in unit trusts as a regulated investment avenue.

The progress made provides a strong platform for the industry to build on. There is considerable opportunity to further expand the reach of investor education and bring the benefits of unit trusts to a broader audience. By continuing to build on the initiatives led by the Association and its members, and strengthening collective efforts across the industry, there is significant potential to deepen participation and take the unit trust sector into its next phase of growth.

While individual fund management companies will naturally communicate their own products, greater emphasis can also be placed on building awareness of unit trusts as an investment category. Before investors choose between different types of funds, they first need to understand what a unit trust is, how it works, the relationship between risk and return, and the protections available within the regulatory framework.

The Association can continue to play a central role in bringing the industry together around initiatives such as:

Nationwide investor awareness campaigns.

Community outreach programs across provinces.

Financial education programs for university students and young professionals.

Simple digital content explaining unit trusts and different fund categories.

Public awareness initiatives across television, radio and social media.

Greater collaboration with schools, universities and community organisations.

Sustained investor education programs that build awareness over the long term.

A coordinated approach can help amplify the work already being done by the Association and its members, creating greater consistency in how unit trusts are understood and helping establish them as a more familiar and accessible investment avenue for Sri Lankan investors.

The opportunity is not to replace existing efforts, but to build on them, broaden their reach and create greater collective impact.

India provides a useful example of how sustained, collective investor education can support greater awareness of mutual funds. The Association of Mutual Funds in India (AMFI), together with its member asset management companies, conducts investor awareness programs across the country. In the financial year ended March 2025, AMFI conducted 306 programs covering more than 68,000 participants, while member asset management companies conducted more than 14,700 programs reaching over 1.14 million participants.

The ‘Mutual Funds Sahi Hai’ campaign is another example of how a simple, industry-wide message can make an investment category more accessible to the public. AMFI identifies the campaign, launched in 2017 under SEBI’s guidance, as one of its key initiatives to build awareness about mutual funds as an asset class.

Sri Lanka can draw from such examples while developing an approach suited to its own market and investor base.

The cost of inaction

The consequences of limited financial literacy extend beyond individual investment decisions.

Unauthorised schemes can spread quickly when they offer simple messages, attractive returns and a strong sense of social proof. CBSL has repeatedly warned the public about prohibited pyramid schemes and provides educational material to help people identify and avoid such schemes.

The communication challenge is therefore significant. Financial products operating within a regulated framework can sometimes be explained through technical language, while unauthorised schemes may rely on simple and persuasive promises.

The industry needs to close that gap.

Financial inclusion is not simply about giving people access to financial products. It is also about giving them the knowledge to assess those products and make informed choices.

Every investor who understands risk, regulation and long-term investing is better equipped to participate in the formal financial system.

A shared responsibility

The future of Sri Lanka’s unit trust industry will depend not only on market performance and product development, but also on how effectively the industry builds understanding and confidence among potential investors.

The Government has an important role in embedding financial literacy within education and national development initiatives.

Regulators can continue protecting the public from unauthorised schemes while also making regulated investment avenues easier to understand.

The Unit Trust Association and its members can build on their existing awareness efforts through broader, more coordinated and sustained industry-wide initiatives.

Financial institutions, too, have a responsibility to communicate in ways that ordinary investors can understand rather than assuming a high level of financial knowledge.

Sri Lanka already has many of the foundations needed to develop a stronger investment culture: a regulated capital market, professional expertise and a range of investment products. The next step is to ensure that more people understand how to participate safely and confidently.

The objective should be simple: to build a nation of informed investors, not vulnerable savers.

A stronger culture of informed investing can support the growth of the unit trust industry, channel more household savings into the formal financial system and contribute to deeper capital markets and broader economic development.

SINGER Sri Lanka hosted the SINGER Fashion Academy Awards 2026 at the Bandaranaike Memorial International Conference Hall (BMICH) recently, recognising 520 students who had successfully completed professional qualifications in Dressmaking, Machine Embroidery and Fashion Design. The ceremony highlighted the academy’s role in preparing students for opportunities in the fashion and sewing industry.

With over 60 years of experience in fashion and sewing education, SINGER Fashion Academy has established an extensive learning network across Sri Lanka. It serves over 6,000 active students annually at more than 50 locations islandwide and through online classes via Zoom. Its portfolio of over 20 courses spans different areas of fashion and sewing, including newly introduced pattern-making courses.

Over the years, the academy’s programmes have helped nurture numerous entrepreneurs in the sewing industry, enabling individuals to build businesses and generate income from their skills. Through these initiatives, SINGER Fashion Academy continues to support the development of talent and entrepreneurship within Sri Lanka’s fashion and sewing sector.

Commenting on the occasion, Mr. Mahesh Wijewardene, Group Managing Director of SINGER (Sri Lanka) PLC, said, ‘At SINGER, we believe that practical education can open doors to new opportunities and contribute to economic empowerment. The achievements of these students reflect the value of investing in professional training that enables individuals to translate their abilities into tangible outcomes, whether through employment, self-employment or entrepreneurship. Through SINGER Fashion Academy, we remain committed to making vocational education accessible and helping people build more independent and fulfilling futures.’

The ceremony recognised students across five programmes: the Certificate in Fashion Design, Diploma in Fashion Design, Advanced Diploma in Fashion Design, Diploma in Dressmaking and Diploma in Machine Embroidery. Of the 520 students recognised, 160 received diplomas, while eight received Advanced Diplomas, reflecting their progression through specialised professional training.

The event also featured a fashion show, giving students the opportunity to present their designs and demonstrate the creativity developed through their training.

Mr. Vajira Tennakoon, Chief Operating Officer of SINGER (Sri Lanka) PLC, said, ‘SINGER Fashion Academy is committed to empowering individuals through education, skills development and creative opportunities. Our diverse range of programmes and focus on personalised attention enable students with different interests and aspirations to develop their abilities and build confidence in applying their skills. We continue to expand our programmes to meet evolving learning needs and encourage more individuals to explore their potential in the fashion and sewing industry.’

Sri Lanka’s most effective craft campaign of the year may well have been the one that didn’t come out of a trade fair, an export pavilion or a government promotion. Miss World Sri Lanka Prathibha Liyanarachchi, a technical designer and graduate of the University of Moratuwa, has brought a very distinctly Sri Lankan visual language to the international arena. Her profile demonstrates how heritage can be made contemporary and relevant and suggests what more of the younger generation of creatives could achieve if given the right opportunities.

At The Art of Weaving, the Minister of Industry and Entrepreneurship Development described handloom as an ‘industry of the future’, called for products beyond the saree and set an export ambition of US$100 million or more. That ambition is welcome. Having spent decades on preservation programmes the real question is what needs to change in order to make that ambition a reality.

For Selyna Peiris and Robert Meeder (co-founders of The Institute for Future Creations) the answer is in building the creative economy of Sri Lanka rather than just talking about it. Five years after Sri Lanka helped to sponsor the UN resolution on the creative economy, the economic potential of the country is still very much to be defined.

”Craft gives us something very concrete to build an economy around,’ says Peiris. ‘We have makers, materials, knowledge and businesses already in place producing. The opportunity is to stop viewing them as just the recipients of conservation programmes and to start to see them as part of a contemporary productive economy.’

Handloom, batik, jewellery, ceramics, wood and fibre can all be sources of jobs, innovation, IP and exports.Growth doesn’t necessarily mean production alone. ‘The answer isn’t necessarily more handloom stations or more looms, says Meeder. ‘It’s about linking the capabilities we already have to markets and partners who are willing to pay a better price for a better product.

That was the basis of Creative Sri Lanka 2030 which was developed in conjunction with the Export Development Board (EDB) and subsequently supported by an EU led matchmaking programme. Six Sri Lankan brands were mentored, matched with international designers and have since secured export orders from Italy, the Netherlands, Germany, Denmark and the UK. The EDB is now rolling out the model on a larger scale, linking established exporters with 40 to 50 SMEs, artisans and designers.

The Chamber of Ethical Lifestyle Enterprises (CELE) grew out of the relationships that were formed through the programme. It’s a chamber which brings businesses together to tackle challenges that are very difficult to deal with on your own, whether that be sustainability requirements, technology, finding buyers, going into international markets etc. Shared infrastructure can help connect entrepreneurs with government, knowledge partners and markets.

That support is becoming increasingly important as the export rules develop. The EU’s emerging Digital Product Passport regime will require a great deal more product information and traceability. That will be a particular challenge for the resource poor MSMEs. If compliance costs go up whilst the craft remains in the low value product space then the small producer is going to be even more at risk of being excluded from the export market. Moving up the value chain is therefore absolutely essential.

‘Small doesn’t have to mean low value,’ says Peiris. Craft businesses don’t need to become factories. They need design, technology, market intelligence and partnerships that add value and get it to the people and communities behind the work.

Sri Lanka also needs the kind of creative talent that can bring communities together with manufacturers, with new materials and with international markets. It’s not about just producing another fashion label as a measure of design success. The education and industry sectors need to be supporting the hybrid product designer and innovator who can take existing sectors and transform them.

Nor should Europe be the only horizon. India has a wealth of craft knowledge, materials, designers, technology and a growing market of consumers all of which could be leveraged in a regional context. There are also opportunities in the area of regenerative materials and regenerative agriculture whereby design, technology and green investment could be used to re-establish the links between land, fibre and product.

For Meeder there’s no ‘sleeping giant’ out there to be found. Sri Lanka has hundreds of capabilities, hundreds of materials, hundreds of businesses and hundreds of knowledge systems. The job is to work out what works, stop doing what doesn’t work and invest in the ideas that actually create value.

The Minister’s $100m dream will be down to more than just volume. It will be about having better businesses, better products, creative talent and markets that are prepared to pay for Sri Lankan know-how and originality.