Here are practical alternatives to bank term deposits for investing in Sri Lanka, with short notes on risk, liquidity, typical access routes and where to learn more. I’ve focused on options available to retail investors in Sri Lanka and included sources you can check for details.

1. Government securities — Treasury bills & Treasury bonds

• What: Short- and longer-term government debt (T‑bills: 91/182/364 days; T‑bonds: 2–30 years). Considered low credit-risk since issued by the government.
• Pros: Low credit risk, often liquid in the secondary market, useful for predictable income or laddering.
• Cons: Interest (real return) affected by inflation and rates; longer bonds carry interest-rate risk. Primary-market minimums can be large (institutional bids), but retail access is available via banks/primary dealers and secondary market.
• How to access: Buy through licensed banks, primary dealers, or brokers; many banks and securities firms provide access and bid submissions for auctions. (cbsl.gov.lk)

2. Unit trusts / mutual funds (collective investment schemes)

• What: Professionally managed pooled funds (money market, income/fixed income, balanced, equity, sector, etc.).
• Pros: Professional management, instant diversification, available in small amounts, suitable for investors who don’t want to pick individual stocks/bonds. Money‑market funds can be a cash-like alternative with higher yield than some deposits.
• Cons: Management fees (TER), returns depend on fund strategy; market risk for equity funds.
• How to access: Through fund managers, banks, brokers, or “fund supermarkets”; regulated by the SEC. Compare TERs, track records and fund mandates. (sec.gov.lk)

3. Direct equity (Colombo Stock Exchange)

• What: Buying shares of listed companies on the CSE.
• Pros: Potential for higher long-term returns and dividends; liquidity for many listed stocks; ability to participate in capital growth.
• Cons: Higher volatility and company-specific risk; requires research or an advisor; trading costs and taxes apply.
• How to access: Open a CDS securities account and trade through a licensed stockbroker (many offer mobile/online trading). The CSE/CDS websites have guides for account opening and trading. (cds.lk)

4. Corporate bonds & debentures (listed and private)

• What: Debt issued by companies; some are listed on the CSE, others offered privately.
• Pros: Higher yields than government securities if creditworthy; fixed income stream.
• Cons: Credit/default risk varies by issuer; liquidity may be limited for unlisted issues. Check credit ratings and covenants. Access via brokers or primary issuance. (cbsl.gov.lk)

5. REITs and property investments / direct real estate

• What: Real estate investment trusts (if available/listed) or direct property purchases (residential, commercial, land).
• Pros: Rental income and capital appreciation; REITs offer real‑estate exposure without direct management.
• Cons: Property is illiquid, needs capital and management; REITs’ returns tied to property market and interest rates. Check CSE listings for any REIT products and regulatory framework. (sec.gov.lk)

6. Insurance-based products (endowment plans, unit‑linked policies, annuities)

• What: Life-insurance savings, unit‑linked insurance plans (ULIPs), pension/annuity products from insurers.
• Pros: Can combine protection and savings, tax/legacy benefits, regular payouts for annuities.
• Cons: Often long lock‑in, surrender penalties, higher fees; returns depend on investment allocation for unit‑linked plans. Check product features and insurer financial strength.

7. Money-market funds & short-term NBFI instruments

• What: Funds and instruments offered by licensed fund managers and non-bank financial institutions (NBFIs).
• Pros: Usually higher yield than regular savings, short-term/more liquid.
• Cons: Not all are covered by deposit insurance; check manager reputation and liquidity terms.

8. Gold and commodities (physical gold, ETFs where available)

• What: Physical gold, gold/silver coins, or any exchange-traded products if available.
• Pros: Hedge against inflation/currency risk; portable store of value.
• Cons: No income, storage/security costs, price volatility.

9. Peer-to-peer (P2P) lending / marketplace lending & crowdfunding (caution)

• What: Lending to individuals/small businesses via platforms.
• Pros: Potentially higher yields.
• Cons: Higher credit/default risk, regulatory environment evolving — use only well-regulated platforms and limit exposure. Verify platform licensing and investor protections.

10. Retirement and statutory schemes (voluntary contributions)

• What: Top-ups to EPF/ETF/occupational pension schemes or private retirement products.
• Pros: Long-term compounding, some tax/benefit structures.
• Cons: Generally long lock‑in; suitability depends on retirement horizon.

Practical tips and considerations

• Risk vs return: Higher expected returns usually mean higher volatility and risk. Match choices to your time horizon, liquidity needs and risk tolerance.
• Diversify: Don’t put all funds in a single asset or issuer. A mix (e.g., fixed income + equities + a fund) reduces single‑point failure risk.
• Costs & taxes: Check management fees (funds), brokerage, custody, and any taxes (dividends, capital gains, withholding).
• Liquidity needs: If you need near-term access to cash, prefer money‑market funds, short T‑bills, or easily traded equities; property and some bonds may be illiquid.
• Due diligence: Use licensed providers (banks, primary dealers, SEC‑regulated fund managers, licensed brokers). Read prospectuses, offering documents and product terms.
• Start small & learn: Many funds let you start with modest amounts; begin with what you understand and scale as you gain confidence.

Where to learn more / next steps

• Central Bank of Sri Lanka — government securities and auction notices. (good for T‑bills/T‑bonds). (cbsl.gov.lk)
• Colombo Stock Exchange / CDS — how to open a CDS account and trade equities; market stats and listed instruments. (cds.lk)
• Securities & Exchange Commission of Sri Lanka — investor guides and information on regulation of funds and securities. (sec.gov.lk)

If you want, I can:

• Suggest an allocation example for a specific time horizon (e.g., 1 year, 3–5 years, 10+ years), or
• Compare 2–3 concrete products (e.g., a money-market fund vs. short T‑bills vs. an equity index fund) available to retail investors and show expected pros/cons.

Which of those would help you most right now?