Repos & Reverse Repos
Repurchase Agreements (Repos) and Reverse Repurchase Agreements (Reverse Repos) are instruments with the following features:
- Issued by the Central Bank on behalf of the Government of Sri Lanka.
- Essentially short term and usually overnight to a week.
- Backed by a Guilt Edged collateral
- An interest bearing loan
- Interest earnings are exempted from Withholding Tax
- It is free from Default Risk since the collateral is guaranteed by the Government.
Repo is for Short Term Investors
Repo – When the customer purchases the security from the dealer with the intent to sell it back.
Reverse Repo is for Short Term Borrowers
Reverse Repo – When the customer sells a security to the dealer with the intent to buy it back.
To obtain a Repo or Reverse Repo simply visit:
NSB Fund Management Company
No 400,Galle Road,
Tel: +94 11 2425010; +94 11 2425012; +94 11 2565956
Fax: +94 11 2574387
Email: firstname.lastname@example.org; email@example.com
Or your nearest NSB Branch or for more information call us on our 24 hour hotline at +94 11 2 379 379.
NSB offers an unmatched security for the deposits of our customers, being 100% guaranteed by the Government of Sri Lanka.