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NatWealth raises its helping hand to contribute to the Health Care Sector in 2015 through CSR
CSR being a vital activity in NatWealth`s agenda, year 2015 too was a successful year.... more >>
Thu, 06 Oct 2016 11:12:44


Natwealth securties record another year of impressive results ending on a high note
On the backdrop of strong economic growth in Sri Lanka and in keeping with......... more >>
Thu, 09 Jul 2015 12:28:35


NatWealth builds house for flood affected victim in Maha Oya
NatWealth Group in collaboration with the Lalith Athulathmudali Foundation funded.... more >>
Fri, 12 Jun 2015 02:58:36


NatWealth Securities Limited hosted cocktails at The Kingsbury Hotel
The Chairman and Board of Directors of NatWealth Securities Limited.... more >>
Tue, 03 Mar 2015 06:03:32




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Frequently Ask Questions

1. What is a Treasury Bill / Treasury Bond?

a) Treasury Bills (T-bills):
  • Issued under the Local Treasury Bill Ordinance No. 8 of 1923 (as amended)
  • Available maturities of investments are for 91 days, 182 days and 364 days
  • Issued at a discount and total proceeds including interest (face value) are paid at the maturity.
  • Yield rates are determined by the market
  • Tradable instrument in the secondary market
  • Issued in scriptless form
b) Treasury Bonds (T-bonds):
  • Issued under the Registered Stock and Securities Ordinance No. 7 of 1937 (as amended). Maturities are available between 2-30 years
  • It carries half yearly coupon payments and the principal is repaid at maturity
  • Yield rates are determined by the market
  • Tradable instrument in the secondary market
  • Issued in scriptless form
c) Repurchase (Repo ) / Reverse Repo facilities
  • Repurchase - you can invest your money for any short-term period in Repos according to your investment requirement and earn interest.
  • Reverse Repo. - By using your T-bills and T-bonds as collateral, you can get a loan for a short period at a low interest rate.
 

2. What are the Benefits of Government Securities ?
  • It is an absolutely default risk free investment, since it is issued by the sovereign government. Hence, they are called gilt-edged securities.
  • You can get a higher rate of interest since the yield rates are determined in the market.
  • Since these bonds are tradable in the secondary market, you can obtain instant liquidity by selling them in the market.
  • All receipts of interest and maturity proceeds are fully repatriable.
  • You could also have a joint investment with some other person or persons. Hence, it is a very good way to share your investments with loved persons.
  • You are not subject to further taxation, since a withholding tax of 10 percent of interest is charged at source.
  • No stamp duty is payable on these bonds.
  • You can get the best service from the CBSL which  maintains your investment in its state of the art, fully automated Central Depository System (CDS).
  • CDS will issue following statements to investors:
    • A monthly statement confirming the transactions that have taken place during the month.
    • 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.

3. Eligible Investors to purchase Government Securities

  • Sri Lankans who have made their permanent residence overseas (Non-residents).
  • Citizens of Sri Lanka with dual citizenship in Sri Lanka and another country.
  • Sri Lankan professionals living in Sri Lanka or abroad who earn income in foreign currency.
  • Citizens of Sri Lanka who have taken up overseas employment or set-up businesses.
  • Banks acting in the fiduciary capacity on behalf of above categories.