Below is a practical, up‑to‑date overview of long‑term ways to save for a child’s education in Sri Lanka, with examples, pros/cons and a simple planning checklist you can use to pick and combine options.

1. Main types of savings/investment vehicles (what they are and when to use them)

• Bank “minor” savings accounts — safe, easy to open, usually include small extra benefits (gifts/scholarship rewards, standing‑order insurance). Good for short horizon or as an emergency/liquidity bucket. Examples: NSB “Hapan” account and HNB’s Singithi (and follow‑on Teen) accounts. (economynext.com)
• Bank/finance company time/deposit or children’s investment plans — fixed/guaranteed return over a fixed term; less volatile than equities, useful for medium term goals or part of a diversified plan. Example: Nations Trust “Kidz Investment Plan” (guaranteed rate for the term). (nationstrust.com)
• Unit trusts / mutual funds (managed equity or balanced funds) — professionally managed exposure to Sri Lankan equities, bonds or mixed portfolios; higher return potential over long horizons but with volatility. Good for long horizon (10+ years). Example fund providers and unit trust offerings in Sri Lanka (CAL, Ceylon Asset Management, others). (cal.lk)
• Government securities / treasury bills & bonds (and National Savings Bank products) — relatively safe, fixed income instruments; use for capital preservation and predictable income. NSB/Post Office style government‑backed savings and NSB fixed products are commonly used for safety. (anybanq.lk)
• Education/child endowment insurance plans — combine saving and life/critical‑illness protection so premiums are waived or cover continues if parent dies. Useful to protect the plan against an untimely death. Examples: AIA, Ceylinco and other Sri Lankan insurers offer “education plans”. (Read policy terms carefully—surrender values, fees and investment linkages vary.) (aialife.com.lk)
• Scholarships / corporate educational schemes — insurers and banks often run scholarship or reward programs for policyholders/accountholders that can partially reduce future costs; check eligibility and terms. (ceylincolife.com)

2. Pros/cons — quick comparison

• Safety (low risk): NSB Hapan / government securities / fixed deposits — low volatility but lower real returns (may be below future education inflation). (economynext.com)
• Growth (higher long‑term return): unit trusts / equity funds — higher expected returns over 10+ years but can drop short‑term. Good if child is young and goal is >10 years away. (cal.lk)
• Protection + saving: education insurance — adds death/TPD protection but often charges higher fees and may have surrender penalties; view it primarily as protection with savings as a secondary feature. (aialife.com.lk)

3. Simple allocation guidance (age / time horizon)

• Goal > 10–15 years away (infant → university): heavier weight to growth vehicles (unit trusts / equity funds) — e.g., 50–75% growth, 25–50% fixed income/cash.
• Goal 5–10 years away: balanced mix — e.g., 40–60% fixed/low volatility (deposits, government securities), 40–60% balanced funds.
• Goal < 5 years: capital preservation — keep most in bank deposits, NSB/Post Office, short‑term government securities or money‑market funds.
  Adjust allocations if you or your family can tolerate volatility, and re‑balance annually.

4. How to plan (practical checklist)

• Step A — Estimate the future cost: use FV = PV × (1 + i)^n where PV = today’s cost, i = expected annual education inflation, n = years until needed. (Pick a conservative i; Sri Lanka’s inflation has been volatile recently, so revisit assumptions frequently.) (imf.org)
• Step B — Determine how much you can contribute (monthly or lump sum) and use a future‑value of an annuity formula (or an online savings calculator) to see if recurring savings reach the target.
• Step C — Choose a mix of instruments based on horizon (use the allocation guidance above). Include one safe bucket (liquidity), one growth bucket (unit trusts/equities) and protection (education/term rider) if you need life coverage.
• Step D — Compare fees, surrender charges, guaranteed returns and liquidity. For insurance plans check the IRCSL‑registered status of the insurer and read the policy illustration. For unit trusts check the fund manager’s track record and the SEC registration. (govserv.org)
• Step E — Automate savings (standing order/standing instruction) so contributions happen regularly; many banks (HNB, Nations, etc.) allow standing orders into minor accounts and some offer standing‑order guarantee features. (hnb.net)

5. Examples of commonly used Sri Lanka products (so you know what to look for)

• NSB Hapan / Punchi Hapan (children’s savings) — very low minimums, gift/scholarship programs, government‑backed bank safety. (economynext.com)
• HNB Singithi / Teen accounts — children’s savings with standing‑order guarantee cover and scholarship rewards. (hnb.net)
• Nations Kidz Investment Plan / Nations Education Plus (bank + bancassurance solutions) — fixed/guaranteed rates or education insurance combos. (nationstrust.com)
• Unit trusts / money‑market & balanced funds (CAL, Ceylon Asset Management, others) — use for long‑term growth; check fees and fund mandate. (cal.lk)
• Education plans from insurers (AIA, Ceylinco, Continental, Softlogic) — protection plus maturity benefit; good if you need a protection component. (aialife.com.lk)

6. Important practical notes and risks

• Inflation and macro volatility in Sri Lanka can change real returns and product attractiveness; review the plan yearly and adjust. (See recent central bank/IMF commentary projecting inflation normalization but with remaining uncertainty.) (imf.org)
• Insurance is regulated by the Insurance Regulatory Commission of Sri Lanka (IRCSL) — buy only from registered insurers/agents. Unit trusts and funds are regulated by the SEC of Sri Lanka — confirm licences and read offering documents. (govserv.org)
• Watch for: high fees, long surrender periods (insurance), low real return vs. inflation (some bank accounts), and concentration risk (single stock or single‑sector funds).

7. Quick starter plan you could implement this month

• Open a minor savings account at a reputable bank (NSB/HNB/Nations) and start a small standing order (to build habit + immediate liquidity). (economynext.com)
• If horizon is 8–15+ years: set up a monthly SIP into a balanced or equity unit trust (managed by an established fund manager). (cal.lk)
• Buy a simple term life policy (or education plan with waiver benefit) sized so that the child’s education remains funded if the breadwinner dies. Compare IRCSL‑registered insurers. (aialife.com.lk)

If you want, I can:

• run a concrete example for you (give me: child’s current age, target country for education, rough current annual tuition, years until need and how much you can save monthly), or
• compare