Central Bank to deepen Securities Market

In a fresh initiative to deepen the Government Securities market and to make it more convenient for retail investors to access Government Securities, the Central Bank will set up new retail sales outlets for government securities at its regional offices in Matara, Matale and Anuradhapura, Centre for Central Banking Studies, Rajagiriya and its Customer Centre at the Ceylinco building in Colombo, a media release from the Bank said.

The new sales outlets will also be established at all regional centres of LankaClear (Pvt) Ltd. The new initiative is expected to enhance the access of retail investors and the public to the government securities market and thereby enhance the investor base of the market. These new retail sales outlets will be managed by NSB Fund Management Co. Ltd. and LankaClear (Pvt) Ltd.

The release said it has been observed that at present, the government securities market is largely concentrated in the Western Province, in particular around Colombo and the suburbs. In this context, the CBSL has recognised that there is a vast potential for a Treasury Bills and Treasury Bonds market outside the Western Province as well.

Accordingly, these new sales outlets are expected to popularise government securities among retail investors who do not have much experience in investment in government securities. This would also provide an excellent opportunity for them to get an attractive return on their investments.

Investors could purchase Treasury Bills or Treasury Bonds of any maturity and/or any value at these outlets. Their investments will be recorded in the usual manner at the Central Depository System of the CBSL that has been established for recording of scripless securities to ensure the sovereign guarantee of repayment.