For generations, Sri Lankans have embraced the traditional මැටි කැටේ (clay money box) and children’s savings accounts. Saving is deeply embedded in our culture. However, with rising living costs, simply saving may no longer be enough.
This World Savings Day, Ceybank Wealth Management explores why Sri Lankans should look beyond saving and discover investment opportunities.
Q: Why move the conversation from saving to investing?
A: Saving is an important habit, but it should be the beginning, not the final destination. Think about our traditional Mati Kete. The money inside remains the same, even after ten years, while living costs increase. We need to move from keeping money aside to making it work for us.
Q: Are traditional savings accounts becoming less important?
A: Not at all. They remain essential for everyday transactions and immediate cash needs. However, unit trust money market funds offer another option, with opportunities to earn market-based returns.
These funds suit short-term needs, surplus cash and business working capital, although withdrawals may require processing time. Income, balanced and equity funds also offer options for building wealth over longer periods, depending on whether goals are weeks or 10 to 20 years away.
Q: What is the biggest danger of leaving money idle?
A: Inflation. What costs Rs. 10,000 today may cost considerably more in ten years. Money’s purchasing power can gradually decline, even when untouched. Financial security means protecting not only our money but also what it can buy.
Q: Is investing really complicated, expensive and risky?
A: That is a common misunderstanding. Investing does not necessarily mean buying shares or taking high risks, nor does it require millions to begin. Unit trusts pool investors’ money and invest in different financial instruments, depending on the fund.
Years in the investment industry have shown me how disciplined investing can build wealth. Even modest, regular investments can grow through consistency, time and compounding, where returns generate further returns.
Q: How can an ordinary salaried employee start?
Start small and stay consistent. For example, if you invest Rs. 5,000 every month in an investment instrument generating an assumed annual return of 10%, you would contribute Rs. 1.2 million over 20 years, potentially growing your investment to approximately Rs. 3.8 million. You don’t have to be wealthy to start.
Q: What makes unit trusts a good bridge between saving and investing?
A: Unit trusts make professional investment management accessible, offering funds for different needs, from short-term cash management to long-term wealth creation. They are regulated by the Securities and Exchange Commission of Sri Lanka. The key is choosing investments suited to your needs.
Q: How can Ceybank make the transition easier?
A: With 35 years of investment management experience, Ceybank pioneered unit trusts in Sri Lanka in 1991. As an associate company of Bank of Ceylon, we offer money market and equity funds. Through our Cey360 App, customers can conveniently monitor and manage investments using their mobile phones.
We have certainly come a long way from the traditional Mati Kete!
Keep money for immediate needs, understand investment opportunities and start with what you can afford.
Our parents taught us to save. Let us teach the next generation how to make money grow.
Saving puts money aside. Investing gives that money an opportunity to grow.
This World Savings Day, let us move from simply saving for tomorrow to investing in our future.
Website: ceybank.com | Hotline: 011 760 2000
