Sri Lanka offers govt. securities to expatriate workers

Jan 07, 2009 (LBO) – Sri Lanka has appointed five domestic banks and a primary dealer of government securities as lead managers to sell gilts to expatriate citizens, the Central Bank said in a statement.

The six lead managers are Bank of Ceylon, Commercial Bank, National Savings Bank, NatWealth Securities Ltd., People’s Bank and Sampath Bank.

Under the scheme Sri Lankans with permanent residence, employed or with businesses overseas, those with dual citizenships and professionals living in Sri Lanka or abroad who earn in foreign currency would be permitted to invest.

The programme will be launched in selected regions from January, 2009 onwards, including the Middle East, Europe, North America and Asia.

It will also cover Australia and New Zealand.

“Investments in Treasury bills or Treasury bonds could be channeled 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,” the statement said.

The central bank said the remittances into and out of TIERA-D accounts would be free from exchange controls.

At the weekly treasury bill auction held Wednesday the 3 month bills closed at 17.31 percent, the six month closed at 18.55 percent and the one year closed at 19.10 percent.