Joint Lead Manager for Promoting Govenment Securities Within Sri Lankan Diaspora
Government of Sri Lanka has opened an investment opportunity in Treasury Bills/Treasury Bonds to Sri Lankan diaspora and migrant workforce.
We are proud to inform that the NatWealth Securities has been appointed as a Lead Manager in this new investment drive by the Central Bank of Sri Lanka (CBSL). We invite all Sri Lankan diaspora and migrant workforce to open Treasury Bill / Bond Investment External Rupee Account – Deshabhimani (TIERA-D ) to facilitate your investment in Government securities.
Government Treasury Bills / Bonds Rates
Period
Rate
3 Months
7.25%
6 Months
7.50%
1 Year
7.25%
2 Years
8.00%
1. What is a Treasury Bill / Treasury Bond?
a) Treasury Bills (T-bills): • Issued under the Local Treasury Bill Ordinance No. 8 of 1923 (as amended) • Available maturities of investments are for 91 days, 182 days and 364 days • Issues at a discount and total proceeds including interest (face value) are paid at the maturity. • Yield rates are determined by the market • Tradable instrument in the secondary market • Issued in scripless form
b) Treasury Bonds (T-bonds): • Issued underthe Registered Stock and Securities Ordinance No. 7 of 1937 (as amended) • Maturities are available between 2-10 years • It carries half yearly coupon payments and the principal is repaid at maturity • Yield rates are determined by the market • Tradable instrument in the secondary market • Issued in scripless form
2. What are the Benifits
• It is an absolutely default risk free investment, since it is issued by the sovereign government. Hence, they are called gilt-edged securities.
• You can get a higher rate of interest since the yield rates are determined in the market.
• Since these bonds are tradable in the secondary market, you can obtain instant liquidity by selling them in the market.
• All receipts of interest and maturity proceeds are fully repatriable.
• You could also have a joint investment with some other person or persons. Hence, it is a very good way to share your investments with loved persons.
• You are not subject to further taxation, since a withholding tax of 10 percent of interest is charged at source.
• No stamp duty is payable on these bonds.
• You can get the best service from the CBSL which maintains your investment in its state of the art, fully automated Central Depository System (CDS).
• CDS will issue following statements to investors:
a) A monthly statement confirming the transactions that have taken place during the month. b) A statement confirming the outstanding balance held by each investor semi annually. c) A statement indicating the maturity proceeds and/or interest payment whenever such payments fall due.
3. Eligible Investors to purchase Govenment Securities
a) Sri Lankans who have made their permanent residence overseas (Non-residents). b) Citizens of Sri Lanka with dual citizenship in Sri Lanka and another country. c) Sri Lankan professionals living in Sri Lanka or abroad who earn income in foreign currency. d) Citizens of Sri Lanka who have taken up overseas employment or set-up business. e) Banks acting in the fiduciary capacity on behalf of above categories.
Interest and maturity proceeds relating to government securities are credited on due dates directly to your TIERA-D account. Please note to send your re-investment instructions prior to maturity date, for us to purchase Treasury Bills/Bonds from CBSL.
6. Eligible Transactions
a) Eligible investors are permitted to enter into Repo/ Reverse Repo transactions using T-bills/T-bonds purchased under this scheme as collateral.
b) Eligible investors are permitted to sell T-bills/T-bonds in the secondary market at any time.
7. On-line viewing facility
After making the investment, you can apply for a password protected on-line viewing facility through internet (https://www.cbsl.lk/lankasec/)
