Senaka Weeraratna

I want to place on record information concerning the beginnings of the Unit Trust Industry of Sri Lanka and my pioneering involvement in the promotion of the Unit Trust as a Vehicle of Investment in Sri Lanka. 

It begins in Australia. I joined a boutique law firm, Wilder Moses Bengasino in Melbourne, as an Associate in April 1987.

It handled Unit Trust related work among other commercial law work.

The senior partner, Mr. Joseph Bengasino, had earlier worked in the Corporate Affairs Office of Victoria, Australia where he had examined applications for registration of Companies and had gained a thorough practical knowledge of the subject.

Mr. Bengasino was a specialist in TimeShares. 

I worked with Mr. Joseph Bengasino and several other lawyers, in his law firm and gained good exposure to Unit Trust work.

I was drafting documents for creating public and private unit trusts and amendment of Trust Deeds.

I returned to Sri Lanka in December 1987 for the holidays and I made it known to the Banking Industry that I was prepared to share my knowledge on the subject of Unit Trust gained in Australia and to help launch the Unit Trust industry in Sri Lanka as an alternate form of investment.  

In January 1988, senior officials of the Bank of Ceylon contacted me. They invited me to lunch at Hotel Lanka Oberoi.

I remember the late Mr. K.Sivagananathan who came in the company of Mr. Direndra Abeyratne and another gentleman from the Bank of Ceylon for lunch.

We discussed the Unit Trust concept and how it could be launched in Sri Lanka.

Once these gentlemen from the Bank of Ceylon were convinced that I knew the subject, I was invited to deliver a talk at the Bank of Ceylon on the topic ‘ The Unit Trust as a Vehicle of Investment’.

It was in January 1988. I delivered the talk at the Bank of Ceylon premises. Mr. Robin Talwatte, then Manager of the Bank of Ceylon, presided at the meeting.

It had a distinguished audience. Dr. P.B. Jayasundera, Mrs. Rohini Nanayakkara, Mr. K. Sivagananathan, Mr. Direndra Abeyratne,  Mr. Tiru Vallar (lawyer), Ms. Sunetha de Silva (lawyer and wife of Neville de Silva) were in the audience.

The very next day I was invited by Mr. N.U.Jayawardena, to meet him and explain to him how Unit Trust works.

I met Mr. N.U. Jayawardena at his Mercantile Investments office. His grandson Mr. Milinda Moragoda also joined the meeting.

Between 1988 – 1990 nothing happened.

I kept in touch nevertheless, with Mr. Sivagananathan over the phone from Australia.  

I returned to Sri Lanka in December 1990 for a short break from my work.

I spoke to several people and convinced them that the time was opportune for the launch of the Unit Trust industry in Sri Lanka.

We decided to have a Public workshop and the Bar Association of Sri Lanka ( with the help of Mr. K. Neelakandan, Mr. J.M. Swaminathan, and Mr. Hemantha Warnakulasuriya) undertook to sponsor it. Mr. G.F. Sethukavalar, P.C. agreed to chair the workshop. Mr. R. Senathi Rajah, Senior Partner, Julius & Creasy, was appointed to be the Moderator.

I was made the Course Director. The half-day workshop was held at the Galadari Meridien Hotel on January 19, 1991. 

The Guest Lecturers and Panelists were:

1)    Mr. L. Namasivayam (Secretary–General, Colombo Securities Council)

2)    Mr. A.B.T. Wijeratne (Investments & Capital Markets) Manager, Merchant Bank of Sri Lanka Ltd.

An expert from the Unit Trust Industry of India also spoke at the workshop and shared his experience. He encouraged Sri Lanka to be bold take steps forward and venture into this field.

The audience comprised Lawyers, Accountants, Bankers, Investors, Businessmen, Insurance groups, and the public.

Altogether there were about 60 participants. The workshop was successful. It acted as a catalyst for the commencement of the Unit Trust industry in Sri Lanka.

The media covered the workshop and the ‘Daily News’ carried my paper ‘ The Unit Trust: Its Place in Sri Lanka’s Financial System’ on the editorial page of the newspaper on January 28, 1991 

Until the holding of this workshop, there were no Unit Trusts in Sri Lanka.

Within two months of this public seminar, 4 ( four) Unit Trusts were established in Sri Lanka heralding a new dawn for new investment vehicles in the country.

That was a great step forward.  

Senaka Weeraratna