Treasury

A Reverse Repo is a form of short-term borrowing for holders of government securities. The customer sells the government securities to the bank, usually for a short tenor, and buys them back at the end of the term. Reverse Repos are money-market instruments that are usually used to raise short-term capital. Offers a supremely secure investment opportunity with a wide range of investment periods.

FEATURES AND BENEFITS

• Supreme security
• A choice of investment periods ranging from one day to one year

ELIGIBILITY

• Resident Sri Lankans and Foreign Nationals over 18 years of age
• Minimum Deposit Rs. 500,000/- (Please refer bank Tariff)

DOCUMENTS REQUIRED

• Clear copy of the NIC or Passport or Drivers License
• Clear copy of a utility bill or a bank statement from another bank or any other valid address verification document
• Request Letter
• Master Re- Purchase Agreement

A?supremely secure investment opportunity via treasury bills & bonds issued by the Central Bank of Sri Lanka on behalf of the Sri Lankan government.

FEATURES AND BENEFITS

• Interest income exempted from income taxes
• Can be traded in the secondary market to create a capital gain
• Risk free investment
• Minimum amount : Rupees five million (Rs 5,000,000/-)

A choice of investment periods as follows

ELIGIBILITY

• Resident Sri Lankans and Foreign Nationals over 18 years of age

DOCUMENTS REQUIRED

• Clear copy of the NIC or Passport or Drivers License
• Clear copy of a utility bill or a bank statement from another bank or any other valid address verification document
• Treasury Bill/Bond Application –?Click to download
• Master Re- Purchase Agreement and T-Bill/Bond Trading Agreement

Bonds are auctioned by the Central Bank on behalf of the government as and when required.?These bonds pay a semi-annual coupon of interest at a fixed rate.?Treasury Bonds are tradable in the secondary market.

FEATURES AND BENEFITS

• Interest income exempted from income taxes
• Can be traded in the secondary market to create a capital gain
• Minimum amount : Rupees five million (Rs 5,000,000/-)

A choice of investment periods as follows

ELIGIBILITY

• Resident Sri Lankans and Foreign Nationals over 18 years of age

DOCUMENTS REQUIRED

• Clear copy of the NIC or Passport or Drivers License
• Clear copy of a utility bill or a bank statement from another bank or any other valid address verification document
• Treasury Bill/Bond Application –?Click to Download??
• Master Re- Purchase Agreement and T-Bill/Bond Trading Agreement

The Sri Lanka Development Bonds (SLDBs) are a debt instrument denominated in US Dollars issued by the Government of Sri Lanka in terms of the Foreign

Loans Act, No.29 of 1957. Repayment is guaranteed by the Government of Sri Lanka.

FEATURES AND BENEFITS

• The tenor of the SLDBs are three ranging from (1) year to five (5) years
• These bonds are denominated in US Dollars
• Interest is paid to the holders in every six (6) months from the date of issue
  • The rate on interest payable on the SLDB shall be six month London Inter Bank Offered Rate (LIBOR) for USD per annum plus a margin through competitive bidding
  • The fixed rate of interest payable on the SLDB shall be determined through competitive bidding
• Principal repayment is made at the end of the maturity period
• Principal and interest on SLDBs are fully repatriable
• All payments in respect of SLDBs are free from tax

ELIGIBILITY

• Authorised Dealers appointed in terms of Section 4 of the Exchange Control Act, No.24 of 1953
• Primary Dealers appointed by the Central Bank of Sri Lanka under the Registered Stock and Securities Ordinance, No.7 of 1937 and the Local Treasury Bills Ordinance, No.8 of 1923
• Citizens of foreign states whether resident in Sri Lanka or outside Sri Lanka
• Citizens of Sri Lanka who have made their permanent abode outside Sri Lanka
• Citizens of Sri Lanka who have proceeded outside Sri Lanka to take up employment or to set up in business or in a profession
• Citizens of Sri Lanka who have dual citizenship provided that those citizens substantiate that their permanent place of abode is outside Sri Lanka
• Bodies corporate or unincorporated established under the laws of a country other than Sri Lanka
• Companies who have entered into agreements in terms of Section 17 of the Board of Investment of Sri Lanka Act, No.4 of 1978 with full exemption from the provisions of the Exchange Control Act provided that all purchases of SLDBs are made against debits to foreign currency accounts maintained only for the purpose of crediting earnings from exports of such companies
• Companies registered to carry on insurance business in Sri Lanka under the provisions of the Regulation of Insurance Industry Act, No.43 of 2000 provided that all purchases of SLDBs are made against debits to Special Foreign Currency Accounts maintained with commercial banks in terms of the approval of the Controller of Exchange. The SLDBs are not sold in the USA or to persons residing in the USA
• The minimum investment at the auction shall be USD 100,000. Denominations are available in multiples of USD 10,000. In the secondary market the minimum investment shall be USD 10,000.