Treasury
bills & bonds issued by the Government of Sri Lanka to Sri
Lankan Diaspora and Migrant Workforce
With
the Sri-Lankan Government’s decision to open Rupee denominated
Treasury bill and Treasury bond market to Sri Lankan Diaspora
and Migrant Workforce, Sampath Bank, one of the Lead Managers
appointed by the Central Bank of Sri-Lanka is proud & delighted
to extend the related services.
Who’s
eligible?
The following categories of persons are eligible to invest in
Treasury bills/Treasury bonds issued by the Government of Sri
Lanka under this scheme, with effect from 6th January 2009.
• |
Sri
Lankans who have made their permanent residence overseas
(Non-residents) |
• |
Citizens
of Sri Lanka who have taken up overseas employment / set
up business in abroad |
• |
Citizens
of Sri Lanka with dual citizenship in Sri Lanka and in
another country |
• |
Sri
Lankan professionals living in Sri Lanka or abroad who
earn income in foreign currency |
• |
Banks
acting in fiduciary capacity on behalf of the above categories |
Investment
& banking process
Investments in Treasury bills or Treasury bonds could be channelled
through electronic or traditional banking channels of the Sampath
Bank by opening a special Treasury bill/bond Investment Rupee
Account (named TIERA-D). Investors can make payment for the purchase
of Treasury bills/Treasury bonds in rupees by crediting to TIERA-D
account using any of the approved foreign currencies
(applicable exchange rates for each currency is indicated).
All remittances in and out of TIERA-D accounts would be free from
exchange controls.
Sampath
“Vishwa”, the cyber branch of the bank facilitates
this end-to-end investment process electronically & securely.
Tenure
Eligible investors are permitted to purchase, sell or transfer
Treasury Bills / Treasury bonds with any maturity period.
Issue and Delivery of Treasury bills/Treasury
bonds
The Treasury bill /Treasury bond will be issued in scrip less
form to the investors who have duly made payments.
Repo
Market Transactions
Eligible investors are permitted to enter into Repo/Reverse
Repo transactions using Treasury bills/Treasury bonds purchased
under this scheme as collateral.
Payment
of Interest/Maturity Proceeds
Maturity proceeds/Interest income payable on Treasury
bills/Treasury bonds will be paid in rupees on respective maturity
dates and will be transferred to nominated account or reinvested
as per the instructions of the investors.
Repatriation
All proceeds received by sale or maturing of Treasury bills/Treasury
bonds and interest income of Treasury bonds are fully
reparable.
And the investors under the above scheme are eligible to enter
into forward exchange contracts to mitigate exchange rate risks
they may face.
Joint Holdings
Treasury bills/Treasury bonds may be held jointly within the facilities
available (at present up to three). Payment of maturity proceeds
and interest payments will be based on the agreement between LM
and joint holders.
Tax Treatment
Eligible investors who invest in Treasury bill /Treasury bond
market pay no further tax on earnings on such bills/bonds apart
from the 10% withholding tax imposed at the primary issue of such
Treasury bills/Treasury bonds.
Stamp Duty
All documents used on the issue or redemption of Treasury bills
/ Treasury bonds are free from stamp duty in Sri Lanka.
Registration
Investors need to be registered at Sampath Bank & the Central
Bank of Sri Lanka (CBSL) to be eligible for the scheme. The details
will be kept securely & confidentially at the Central Depository
System (CDS) of LankaSecure maintained by the Public Debt Department
(PDD) of the CBSL.
Investors may use secure on-line registration forms
available here.
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Download
- Registration forms |
Investor
information & investment status
CDS will issue statements containing the following to
the investors.
• |
A
monthly statement confirming the transactions that have
taken place during the month. |
• |
A
statement confirming the outstanding balance held by each
investor semi annually. |
• |
A
statement indicating the maturity proceeds and/or interest
payment whenever such payments fall due. |
Note:
Statements will be issued directly to the name and address of
the investor, as registered in the CDS.The
investment status could be viewed through Internet via LankaSecure
net (https://www.cbsl.lk/lankasec/).
Special
instructions/conditions
| 1 |
Funds
available at NRFC accounts in Sri Lanka are not permitted
to transfer to TIERA-D account.
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| 2 |
It
is the responsibility of the investor to be mindful of
the laws and regulations in the countries where they reside
and the issuer is not liable for any act or omission made
by the investor on that behalf. |
| 3 |
The
courts in Sri Lanka shall have exclusive jurisdiction
in respect of all matters relating to Treasury bills/Treasury
bonds issued by the Government of Sri Lanka. |
| 4 |
The
terms and conditions of Treasury bills/Treasury bonds
shall be governed by and construed in accordance with
the laws of Sri Lanka. |
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