Lanka Rating Upgrades Stability Rating of

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Ceylon Money Market Fund

14-Jan-26

01

Applicable Criteria

Assessment Framework | Stability Rating Criteria | Jun-24

02

Related Research

Sector Study | Mutual Funds | Stability | Feb-25


03

Analyst

Imran Iqbal | imran@lra.com.lk
+94 114 500099 | www.lra.com.lk

PRESS
RELEASE

DISCLAIMER

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to LRA

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Rating Type Stability
Current
(14-Jan-26) 		Previous
(10-Oct-24)
Action Upgrade Initial
Rating A(f) A-(f)
Outlook Stable Stable
Rating Watch - -


The primary objective of the Ceylon Money Market Fund (“the Fund”) is to generate risk-adjusted returns for investors by maintaining exposure to a diversified portfolio of short-term, investment-grade (BBB- and above) fixed-income instruments. The Fund’s portfolio remains concentrated in Non-Bank Financial Institutions, which currently account for a significant portion of total holdings (~70.7%). The remainder of the portfolio is distributed across Commercial Papers (~18.8%), Trust Certificates (~1.9%), Reverse Repos (~7.5%), Savings Accounts (~0.1%), and Debentures (~1.0%). As of December 2025, the Fund’s Weighted Average Maturity (WAM) stood at 127 days, indicating a relatively short duration profile that supports strong liquidity and limits exposure to interest rate risk. Over the one-year period ended November 2025, the Fund outperformed the peer group average, delivering a cumulative return of ~9.6% compared to the peer average of ~8.6%. The Fund’s future returns are expected to be influenced by movements in market interest rates and overall market conditions.

The Fund maintained a portfolio composition as of December 2025 with ~99.4% of investments in “A-” rated and above instruments, including Placements (NBFI)/Fixed Deposits, Commercial Papers, Trust Certificates, Debenture, REPOs and remaining ~0.6% in an investment-grade ‘BBB+’ rated (NBFI)/Fixed Deposits. The Fund’s unitholder concentration stood at ~22.2%, indicating a relatively low concentration level and thereby reducing susceptibility to redemption pressures.

The Fund follows its approved investment policy and aligns with prevailing market expectations. This approach is likely to continue, going forward. Any notable variations in asset allocation, credit exposure, duration, maturity structure, or performance relative to peers could influence the fund’s rating.
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About the Entity

Ceylon Asset Management Co. Ltd (CAM), the managing company, is licensed under the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021. CAM functions as an associate company of Sri Lanka Insurance Corporation. The company manages eight Collective Investment Schemes (Unit Trust Funds), of which seven are rupee-denominated, namely, the Ceylon Income Fund, Ceylon Financial Sector Fund, Ceylon Index Fund, Ceylon Tourism Fund, Ceylon Treasury Income Fund, Ceylon Money Market Fund, and Ceylon IPO Fund. Hatton National Bank (HNB) serves as the Trustee and Custodian Bank for all LKR-denominated funds. CAM also manages the only USD-denominated Sovereign Bond Fund in the country, known as the Ceylon Dollar Bond Fund (CDBF), which invests solely in Sri Lanka International Sovereign Bonds issued by the Government of Sri Lanka. Deutsche Bank AG, Colombo, acts as the Trustee and Custodian Bank for this fund. As of November 2025, CAM’s total assets under management (AUM) stood at approximately LKR 19 billion, with the Ceylon Money Market Fund accounting for around LKR 5.2 billion. Between December 2024 and November 2025, the Fund delivered a net return of ~9.6%, outperforming peers that recorded an average return of 8.6%. Mr Dulindra Fernando has been serving as the Managing Director of CAM since January 2009. Prior to this, he held the position of Chief Executive Officer at MAS Investments. He is a Chartered Financial Analyst (CFA), a member of the Institute of Chartered Accountants in Australia, and holds a Bachelor’s degree in Economics from Monash University.

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