Investment Products
Sri Lanka Government Securities
  1. Treasury Bills.

Treasury bills are short-term debt instruments of 3, 6 or 12 Months issued by the Government of Sri Lanka. Treasury Bills are discounted instruments - the investor pays the discounted value (investment value) and receives the face value at maturity. Treasury Bills are issued through weekly auctions.  

Eligibility:

  • A non-national resident in or outside Sri Lanka.
  • A non-national of Sri Lankan origin, who is resident outside Sri Lanka.
  • A Sri Lankan citizen, resident outside Sri Lanka.
  • A company incorporated outside Sri Lanka.
  • Country and regional funds, Mutual funds, unit trusts and other institutional investors who are established outside Sri Lanka.
  • An administrator or executor of the estate of a diseased person, who maintained an inward investment account with the bank until the completion of the administration of the deceased person’s estate.
  • A receiver or liquidator of a company that maintained an inward investment account with the bank until proceedings are concluded.
  • Any other person or category of persons who may be authorized by the central bank from time to time. 

What are the main features of treasury bills?

  • Risk free.
  • Short term debt instrument.
  • Maturity proceeds (Face value) will be paid on maturity.
  • Yield rates are determined by the market.
  • Tradeable instrument in the secondary market.
  • Issued in script less form. 

What benefits can a customer derive by investing in Treasury Bills?

  • It is a risk-free investment, since its issued by the sovereign government
  • You can get the competitive rate of interest since the rates are determined in the market
  • Treasury bills are tradable in the secondary market, you can obtain instant liquidity by selling them in the market
  • All receipts of maturity proceeds and capital gains are fully repatriable  

How can I invest in a Treasury Bill?

You can visit a branch of your choice and discuss your requirement with an officer.Interest rate applicable for Treasury Bills can be discussed with the officer.

Please fill the relevant application form and hand it over to the branch. 

Documents required

  • Request letter.
  • Application for Real Time Notification (CDS)
  • E-confirmation letter.

 

  1. Treasury Bonds

Treasury Bond is a medium to long term debt instrument of 2 to 30 Years issued by the Government of Sri Lanka. Treasury Bond carries a coupon (interest) which is paid on a semiannual basis, and the principal is repaid on maturity. 

Eligibility:

  • A non-national resident in or outside Sri Lanka
  • A non-national of Sri Lankan origin, who is resident outside Sri Lanka
  • A Sri Lankan citizen, resident outside Sri Lanka
  • A company incorporated outside Sri Lanka
  • Country and regional funds, Mutual funds, unit trusts and other institutional investors who are established outside Sri Lanka
  • An administrator or executor of the estate of a diseased person, who maintained an inward investment account with the bank until the completion of the administration of the deceased person’s estate.
  • A receiver or liquidator of a company that maintained an inward investment account with the bank until proceedings are concluded
  • Any other person or category of persons who may be authorized by the central bank from time to time.

What are the main features of treasury bonds?

  • Risk free
  • Medium to Longer term debt instrument
  • Coupon will be paid semiannually, and Face value will be paid at maturity
  • Yield rates are determined by the market
  • Tradeable instrument in the secondary market
  • Issued in scripless form 

What benefits can a customer derive by investing in Treasury Bonds?

  • It is a risk-free investment, since its issued by the sovereign government
  • You can get the competitive rate of interest since the rates are determined in the market
  • Since these bonds are tradeable in the secondary market, you can obtain instant liquidity by selling them in the market
  • All receipts of maturity proceeds and capital gains are fully repatriable

How can I invest in a Treasury bond?

You can visit a branch of your choice and discuss your requirement with an officer. Interest rate applicable for Treasury Bonds can be discussed with the officer.

Please fill the relevant application form and hand it over to the branch.

Documents required.

  • Request letter.
  • Application for Real Time Notification (CDS)
  • E-confirmation letter.
Repurchase Agreements (TB Repos, CP Repos)

Repurchase agreements (Repo) are arrangements which involve the sale for cash, of securities (government securities) at a specified price with a commitment to repurchase the same or similar securities at a fixed price on a specified future date. The difference between the sale price and the repurchase price is the interest income. A repo is similar to a loan that is collateralized by the securities underlying the agreement. Most repos are very short-term money market instruments. 

Commercial papers are short-term, non-collateralized (unsecured) debt securities issued by private sector companies to raise funds, through banks and other financial intermediaries. 

Commercial papers are generally issued by creditworthy (high-rated) institutions in large denominations and have additional bank guarantees of payment. 

Eligibility: 

  • A non-national resident in or outside Sri Lanka.
  • A non-national of Sri Lankan origin, who is resident outside Sri Lanka.
  • A Sri Lankan citizen, resident outside Sri Lanka.
  • A company incorporated outside Sri Lanka.
  • Country and regional funds, Mutual funds, unit trusts and other institutional investors who are established outside Sri Lanka.
  • Any other person or category of persons who may be authorized by the central bank from time to time.

What are the main features of REPO?

  • Risk free as the collateral is backed by the government.
  • Receive attractive high interest rate.
  • Provide liquidity if needed.

How can I invest in a REPO?

You can visit a branch of your choice and discuss your requirement with an officer. Interest rate applicable for REPO can be discussed with the officer.

Please fill the relevant application form and hand it over to the branch.

Documents required for individuals

  • MRA
  • Request letter.
  • Application for Real Time Notification (CDS)
  • E-confirmation letter.

Documents required for corporate

  • MRA
  • Board resolution.
  • Certified copy of Certificate of Incorporation.
  • Business registration form
  • Authorized signatories.
  • Request letter.
  • Application for Real Time Notification (CDS)
  • E-confirmation letter.
Corporate Debt (Commercial papers, Debentures and Trust Certificates)

Commercial papers are short-term, non-collateralized (unsecured) debt securities issued by private sector companies to raise funds for their own use, through banks and other financial intermediaries.

Debentures are; unsecured, medium or long term, interest-bearing bonds issued by private sector Listed companies, banks and other financial institutions. Debentures are usually issued by large, well-established institutions.

An asset-backed security is a security whose income payments and hence value is derived from and collateralized by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually. For investors, asset-backed securities provide an alternative investment vehicle that provides higher yields and greater stability than government bonds. Asset-backed securities also provide portfolio diversification for investors looking to invest in other markets.

Eligibility: 

  • A non-national resident in or outside Sri Lanka.
  • A non-national of Sri Lankan origin, who is resident outside Sri Lanka.
  • A Sri Lankan citizen, resident outside Sri Lanka.
  • A company incorporated outside Sri Lanka.
  • Country and regional funds, Mutual funds, unit trusts and other institutional investors who are established outside Sri Lanka.
  • Any other person or category of persons who may be authorized by the central bank from time to time.

What are the main features of Corporate Bonds and Debenture?

  • Receive attractive high interest rate.

How can I invest in a Corporate Bonds and Debenture?

You can visit a branch of your choice and discuss your requirement with an officer. Interest rate applicable for Corporate Bonds and Debenture can be discussed with the officer.

Please fill the relevant application form and hand it over to the branch.

Documents required

  • Request letter.
  • Application for Real Time Notification (CDS)
  • E-confirmation letter.
Sri Lanka Development Bonds

The Sri Lanka Development Bonds (SLDBs) are a debt instrument denominated in US Dollars issued by the Government of Sri Lanka. Interest is paid to the holder every six months and the principal repayment is made at the end of the maturity period. Calculation of interest payments will be based on the six-month London Inter Bank Offered Rate (LIBOR) for USD per annum plus a margin determined through competitive bidding at the auction. 

Eligibility:

  • 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
  • Companies registered under the provisions of the Regulation of Insurance Industry Act. No. 43 of 2000 – funds from their Special Foreign Currency Accounts
  • Citizens of foreign states whether resident in Sri Lanka or outside Sri Lanka
  • Please note that SLDB's are not sold in the USA or to persons residing in the USA
  • Citizens of Sri Lanka who have made their permanent abode outside Sri Lanka
  • BOI companies – SLDB investment should be from their export income 

How can I invest in SLDBs?

You can visit a branch of your choice and discuss your requirement with an officer. Interest rate applicable for SLDBs can be discussed with the officer.

Please fill the relevant application form which can be downloaded from the CBSL web site and send the hard copies to Treasury.

Documents required

  • Request letter
  • E-confirmation letter

 

Application Form