Host of benefits for Sri Lankan diaspora by PB
People’s Bank announced new initiative measures to Sri Lankans
earning foreign currency, offering the best short term and long term
investment opportunities through the Sri Lankan Rupee Treasury Bill and
Bonds.
Under this scheme introduced by the Government of Sri Lanka and
People’s Bank offers the Rupee denominated Treasury Bill and Bond, this
initiative offers a safe and highly liquid investment opportunity to the
Sri Lankan diaspora and migrant workers while providing an attractive
return on their investments.
A Treasury Bill is a short term debt instrument issued by the
Government of Sri Lanka with maturities of 91 days, 182 days and 364
days.
Treasury Bond
A Treasury Bond is a medium to long term debt instrument issued by
the Government of Sri Lanka with maturities of 2 - 10 years. As an Agent
of the Government of Sri Lanka, the Public Debt Department of the
Central Bank of Sri Lanka (CBSL) issues Treasury Bills/ Bonds and pays
interests and maturity proceeds on due dates.
Customer of People’s Bank who live abroad now have the opportunity to
channel their investments through the Treasury Bill / Bond Investment
External Rupee Account - Deshabhimani (TIERA-D) which can be opened by
the investor. All transactions relevant to these investments will be
routed through this TIERA-D.
The benefits offered by People’s Bank include, remittances into and
out of the TIERA-D accounts would be free from exchange controls. The
investor can also enter into a Forward Exchange Contract with the bank
if they wish to mitigate the exchange risk involved with their
transactions.
In addition to this, investor can look forward to risk free, gilt
edged debt instrument, maturity proceeds at face value paid on maturity,
half yearly coupon payments for treasury bonds, yield rates determined
by the market, tradable instrument in the secondary market amongst a
host of others.
Investment opportunity
Senior Deputy General Manager - Treasury and International Business,
People’s Bank Vasantha Kumar said, “This is a great investment
opportunity for Sri Lankans living abroad to earn high return in
concurrence with further empowering the Government to go ahead with
needed development projects in the country. Also, we are proud to note
that People’s Bank has been appointed as one of the Joint Lead Managers
to facilitate this endeavour.”
In addition, under the Central Bank’s new initiative measures, to
promote inward remittances and to build the foreign exchange reserves to
a high level, the Government of Sri Lanka has made necessary
arrangements to pay a bonus interest in Sri Lanka rupees on the interest
paid on Resident Foreign Currency and Non-Resident Foreign Currency
accounts with effect from February 1, 2009. The bonus paid will be the
rupee equivalent of 20% of the foreign currency interest that accrues on
deposits. |