Road shows to woo Lankans to invest in TBs, bonds
The Central Bank, the regulator of the finance industry together with
the participating banks will conduct a series of road shows to attract
the Sri Lankan diaspora to invest in Treasury Bills and Bonds.
The Government has decided to open the Rupee denominated Treasury
bill and Treasury bond market for the Sri Lankan Diaspora and Migrant
Workforce from January 6. The new initiative was announced in the
Central Bank ‘Road Map: Monetary and Financial Sector Policies for 2009
Pic: Kavindra Perera
Through this scheme, it is expected to widen the investor base,
diversify the Government Securities market, make it more convenient for
Sri Lankans living abroad to access Government Securities, and to create
a more stable Government securities market.
This scheme will also provide a safe and highly liquid investment
opportunity for Sri Lankans living abroad, while providing them with an
attractive return on their investments.
This programme initially will be launched in selected regions from
January, 2009 onwards. The regions will include the Middle East (Dubai,
Abu Dhabi, Kuwait, Jordan, Lebanon, Qatar, Bahrain, Saudi Arabia and
Oman), Europe (Italy, France, Switzerland, Germany, The Netherlands and
UK), North America (USA and Canada), Asia (South Korea, Malaysia,
Singapore, Japan, India and Bangladesh). In addition, the programme will
cover Australia and New Zealand.
Executive Director/COO Sampath Bank, Aravinda Perera said that they
will actively participate in the road shows organized by the CB while
the bank will also conduct its own promotions campaign to promote all
our products. He said that they have representatives in four countries
while there are people who canvass business for the bank.
Perera said that earlier CB permitted foreigners to invest in
Treasury Bills and bonds and now the government is of the view that it
should be opened to the Sri Lankan diaspora too.
Investments in Treasury bills or Treasury bonds could be channelled
through any one of the Joint Lead Managers, using the Treasury bill/bond
Investment External Rupee Account-D (TIERA-D) to be opened by the
investor for that purpose.
Remittances into and out of TIERA-D accounts would be free from
exchange controls. Through this scheme, Sri Lankans living abroad,
including: Sri Lankans who have made their permanent residence overseas
(Non-residents), citizens of Sri Lanka who have taken up overseas
employment or set up business abroad, citizens of Sri Lanka with dual
citizenship living in Sri Lanka or abroad, Sri Lankan professionals
living in Sri Lanka or abroad who earn income in foreign currency, and
banks acting in a fiduciary capacity on behalf of the above categories,
would, from now onwards, be permitted to invest in Treasury Bills and
Treasury bonds, as well as receive interest, capital gains and maturity
proceeds to the credit of any bank account in Sri Lanka or abroad.
Sampath Bank has been appointed as the Joint Lead manager and the
bank is very happy that the CB had the trust to appoint us the lead
manager, said Perera.
To facilitate this endeavour which is expected to cover almost the
entire globe, six joint lead managers, namely, Bank of Ceylon,
Commercial Bank of Ceylon PLC, National Savings Bank, NatWealth
Securities Ltd., People’s Bank and Sampath Bank have been appointed.