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Sri Lanka Government Securities

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Features
  • Treasury Bill

    Treasury bill is a short term debt instrument 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 on maturity. Treasury Bills are issued through weekly auctions.

  • Treasury Bond

    Treasury Bond is a medium to long term debt instrument of 2 to 20 Years issued by the Government of Sri Lanka. Treasury Bond carries a coupon (interest) which is paid on a semi annual basis, and the principal is repaid on maturity.

  • Repos

    REPOs are when the Bank agrees to borrow funds against Treasury Bills or Bonds from a customer for a specified period of time for a mutually agreed rate of interest. The Treasury Bills or Treasury Bonds are assigned to you as collateral for your investment. This is a risk free investment.

  • Reverse Repos

    An agreement is reached when there is a commitment by the seller or dealer to buy a security from the purchaser or customer at a specified price at a specified future date. When this agreement is made from the customer’s perspective, it is referred to as a Reverse Repo

  • Sri Lanka Development Bond.

    Sri Lanka Development Bonds (SLDBs) is 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.

How to get started
  • Eligibility:
  • Treasury Bills & Bonds
    • Foreign institutional investors including country funds, regional funds or mutual funds
    • Corporate bodies incorporated in Sri Lanka.
    • Resident individuals.
    • Citizens of foreign states whether residing in Sri Lanka or outside Sri Lanka.
    • Non resident Sri Lankans.
    • Corporate bodies incorporated outside Sri Lanka.
  • Repos & Reverse Repos
    • Individual customers and Corporate Bodies incorporated in Sri Lanka.
  • Sri Lanka Development Bond.
    • 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
  • Documents Required:
    • Treasury Bill & Bond
    • Personal Corporate bodies
      NIC Copies NIC Copies of Directors
      Investor data request form Investor data request form
      Client Registration Form Client Registration Form
      Facsimile / Email Authority Facsimile / Email Authority
      KYC Form KYC Form
      Lanka Secure net form Lanka Secure net form
      Application Application
      Customer Agreement Authorized Signatories List
      Company board Resolution
      Certificate of Incorporation
      Certified copy of Articles of Association
      Form 1 (Registration of a company)
FAQs

    Who Issues Treasury Bills/Bonds?

    As an Agent of the Government of Sri Lanka, the Public Debt Department of the Central Bank of Sri Lanka (CBSL) issues the Treasury bills and Treasury Bonds, through weekly auctions

    How to Invest in Treasury Bills / Bonds?

    Investors can purchase Treasury Bills/Bonds either from auctions in the primary market through a designated Primary Dealer (PDs) or from the secondary market through Primary Dealers, Commercial Banks on any business day

    How Can I Apply for Treasury Bills / Bonds?

    • You can purchase Treasury bills / bonds at any time through Primary Dealers (PDs) or Licensed Commercial Banks (LCBs) registered with the CBSL.
    • After completing the transaction, your agent (LCB/PD) will open a security account for you in the CDS maintained by the CBSL. This account is debited /credited simultaneously based on your tradings in the market

    What are the Main Features of Treasury Bills?

    • Maturity proceeds (Face value) will be paid on maturity
    • Tradable instrument in the secondary market
    • Short term debt instrument (3 to 12 months)
    • Yield rates are determined by the market
    • Risk free, gilt edged debt instrument
    • Issued in scripless form

    What are the Main Features of Treasury Bonds?

    • It carries half yearly coupon payments and the principal is repaid on maturity
    • Tradable instrument in the secondary market
    • Yield rates are determined by the market
    • Risk free, gilt edged debt instrument
    • Issued in scripless form
    • Maturities are available with 2-20 years

    What Benefits Can I Derive by Investing in Treasury Bills/Bonds?

    • You can get the highest rate of interest since the yield rates are determined in the market.
    • Since these bills/bonds are tradable in the secondary market, you can obtain instant liquidity by selling them in the market.
    • It is an absolutely risk free investment, since it is issued by the sovereign government. Hence, they are called gilt-edged securities meaning that they are covered by gold.

    How Can I Collect Maturity Proceeds?

    Interest (for Treasury Bonds) and Maturity proceeds (for both Treasury Bills and Bonds) are credited on due dates directly to your account through your agent.

    What Benefits Can I Derive by Investing in Repos?

    • Easy to convert to money even before maturity by discounting.
    • Ability to use as a collateral.
    • No withholding tax.
    • You will receive an attractive rate of return.

    Benefits of SLDBs?

    • Coupon interest rate is pegged to the 6-month USD London Inter-bank Offer Rate (LIBOR) thereby giving you an opportunity to earn interest at the market rates.
    • You will receive Semi-annual interest payments.
    • Higher return than that of a standard deposit.
    • No exchange rate risk.
    • Your returns are totally tax free in Sri Lanka.