Masses in rural areas to benefit from TBs, bonds

by L. S. A. Wedaarachchi

The government's policies and financial implementation should benefit the masses in rural areas, Central Bank Governor Ajith Nivard Cabraal said at the opening, the first instrument-selling centre at the Central Bank training centre in Rajagiriya.

"Seventy percent of the investors of treasury bills and treasury bonds are from the Western province and this trend should be changed for the well-being of the masses.

With the aim of bringing treasury bills and treasury bonds investments closer to the rural masses, the Central Bank entered a new chapter of investments, he said.

Investing in government instruments is safe. It gives a good interest by giving equal opportunity not only in the urban areas but also in rural areas in the country. Investing in treasury bills would give a short term return to investors and the bonds are for long-term investors, which is more than one year.

By promoting these instruments in rural areas it will create a strong treasury bill and treasury bond market in the long run, he said.

According to the new project the public and other institutions can invest at any time - conveniently through primary dealers, licensed commercial banks, newly set up regional centres of Lanka Clear (Pvt) Ltd and the National Savings Bank owned NSB Fund management Co Ltd. Lanka Clear (Pvt) Ltd regional centres in Ratnapura, Badulla, Ampara, Nuwara Eliya Kandy, Kurunegala, Anuradhapura, Polonnaruwa, Jaffna, Matara, Colombo and the NSB Fund Management regional centres at Matale and Rajagiriya have been authorised by the Central Bank for trading in government securities.

The investors who are trading in government securities are entitled to higher returns on the investment with government security. Interest will be free from income tax.

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