Increase of Foreign Investment in Government Treasury Bonds

(December, 10, Colombo, Sri Lanka Guardian) As a measure of further enhancing the freedom of capital account transactions, the Government of Sri Lanka has decided to increase the foreign investment in rupee denominated Treasury bond market from the existing limit of 5% of the outstanding Treasury bond stock to 10% level with effect from November 30, 2007.

Foreign investors including foreign country funds, mutual funds or regional funds approved by the Securities and Exchange Commission (SEC) of Sri Lanka, corporate bodies incorporated outside Sri Lanka and citizens of foreign states are now eligible to make investments up to 10 % of the outstanding Treasury Bonds.

This measure will enhance the development of the capital market by broadening the investor base and increasing the competition in the bond market.

Operating instructions issued to authorized dealers by the Exchange Control Department of the Central Bank of Sri Lanka, Guidelines issued to participating agents and foreign investors, and Investors Guide are also available on the Central Bank website.

Details on currently available Treasury bonds and prevailing market rates can be obtained from the followings;

Website (http://www.cbsl.gov.lk/).
Telephone: 94-11-2477274, 94-11-2477212, 94-11-2477278
Fax: 94-11-2477718 / 19 or 94-11-2477759
E-mail: pddrbw@cbsl.lk, siriwardena@cbsl.lk , pdddvs@cbsl.lk