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GOVERNMENT OF SRI LANKA TREASURY BILLS & TREASURY BONDS

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An invitation to the Sri Lankan Diaspora & the migrant Working Community to invest in Sri Lanka Government Securities through National Savings Bank a Lead Manager appointed by the Central Bank of Sri Lanka.

  • ATTRACTIVE RETURNS
  • 100% SAFETY
  • HIGHLY LIQUID
  • VERT CONVENIENT
  • CAN BE USED AS COLLATERAL

Sri Lanka Government Treasury Bills and Treasury Bonds are sovereign investment instruments which provide the opportunity for Sri Lankans living overseas to contribute to the economic development of the country.

Right now, You may not be receiving sufficient return
for your hard earned foreign exchange that is kept abroad

  • Today, interest earnings may be as low as 0-2 percent per annum at current interest rates abroad.
  • You may be losing the initial value of deposits because most major currencies such as UK Pound, Euro and Australian Dollar have lost their value significantly.
  • Fees and charges by some foreign banks may sometimes be even higher than your interest income.

If so, why do you still keep your money abroad despite lower or negative returns?

  • You may feel that your money is safe if you keep it overseas.
  • You may be worried about the possible depreciation of the Sri Lanka rupee which may reduce the value of your money.
  • You may be worried about the Sri Lankan tax man coming after you if you bring this money and that you may have to pay large amounts in taxes.
  • You may think that you cannot repatriate your money back.
  • You may think that you cannot convert your investment into money before maturity.

But now, your fears can be put to rest. How?
By investing in Sri Lankan Government Treasury Bills and Treasury Bonds

  • These are default risk free investments, since it is issued by a 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 Treasury Bills and Treasury Bonds are tradable in the secondary market, you can obtain instant liquidity by selling them in the market.

  • All receipts of interest/maturity proceeds and capital gains are fully repatriable.

  • During the last 3 years, the Sri Lanka rupee has depreciated against the US dollar by an annual average rate of 3.4 percent only.

  • 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 the withholding tax of 10 percent charged at source, is the final tax.  Further no stamp duty is payable on these securities.

  • You can benefit by the service of the state of the art, fully automated Central Depository System  (CDS) of Lanka Secure, which will issue periodic statement to the investors, confirming their holdings and transactions

  • You will be able to check your investment online through the internet, via a secured and password protected website (https://www.cbsl.lk/lankasec/)

 

You can play our part in the effort to rebuild our country and contribute by
investing in Government Treasury Bills and Treasury Bonds.

 

What is a Treasury Bill?

A Treasury Bill is a short term debt instrument issued by the Government of Sri Lanka under the Local Treasury Bill Ordinance with maturities of 90 days, 182 days, 364 days.

What is a Treasury Bond?

A Treasury Bond is a medium to long term debt instrument issued by the Government of Sri Lanka under the Registered Stock and Securities Ordinance with maturities of 2-10 years.

Who has authority to issue Treasury Bills/Treasury Bonds?

In terms of annual borrowing targets specified in the Appropriation Act which is approved by the Parliament annually, the Government of Sri Lanka is authorized to issue Treasury Bills/Treasury Bonds.

As an Agent of the Government of Sri Lanka, the Public Debt Department of the Central Bank of Sri Lanka (CBSL) issues Treasury Bills/Treasury Bonds and pays interest and maturity proceeds on due dates.

What are the main features of Treasury bills/Treasury bonds?

  • Risk free, guild edged debt instrument.
  • Short term (Treasury Bills) and medium to long term (Treasury Bonds) debt instrument.
  • Maturity proceeds (Face Value) will be paid on maturity.
  • Half yearly coupon payments for Treasury bonds.
  • Treasury bills are issued at a discount and the interest payment is at the maturity.
  • Yield rates are determined by the market.
  • Tradable instrument in the secondary market.
  • Issued in scripless form.

Who is eligible to invest in Treasury Bills/Treasury Bonds?

Any one of the following categories:

  • Sri Lankans who have made their permanent residence overseas (Non residents)
  • Citizens of Sri Lanka with dual citizenship in Sri Lanka.
  • Sri Lankan Professionals living in Sri Lanka or abroad who earn income in foreign currency.
  • Citizens of Sri Lanka who have taken up overseas employment or set up business.

What types of transactions are permitted to eligible investors?

  • Eligible investors are permitted to purchase Treasury Bills/ Treasury Bonds issued by the government of Sri Lanka from direct placement/primary auctions through Lead Managers.

  • Eligible investors are permitted to enter into Repo/Reverse Repo transactions using Treasury Bills/Treasury Bonds purchased under this scheme as collateral.

  • Eligible investors are permitted to sell Treasury Bills/Treasury Bonds in the secondary market at any time.

How can you apply for Treasury Bills/Treasury Bonds?

  • You can purchase Treasury Bills/Treasury Bonds at any time through NSB appointed by the CBSL for trading in Government securities for the Sri Lankan diaspora.

  • In order to make arrangements for fund transfers, fill the format given below & submit to open a Rupee account named “Treasury Bill/Bond investment External Rupee Account Deshabhimani (TIERA-D) with us.

  • To make your investment in Treasury Bill or Bond fill the form 11 given below online and submit to select the desired maturity period and the yield. Please refer to type of security and the indicative yield given in this page and the Rupee commission rate.
    On Receipt of your remittance together and the form 1 and II.  We will confirm your TIERA-D account details and the investment in Govt. Securities.

  • After completing the transaction, NSB will open a security account for you in the CDS maintained by Lank secure of CBSL.  This account is debited /credited simultaneously, based on your transactions.

How can you collect maturity interest proceeds?

  • Interest/maturity proceeds relating to Treasury Bills/Treasury Bonds are credited on due dates directly to your account we responsible to collect and pay dues to you on the due dates.

How can you check your own investment status on-line?

  • After making the investment, you can apply for a password protected on-line viewing facility through the internet (https://www.cbsl.lk/lankasec/).

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