The NatWealth Group offers some of the best fixed income securities in Sri Lanka including Treasury Bills, Treasury Bonds, Repos and Sri Lanka Development Bonds.
Many are the advantages of dealing with a stable, trusted and reliable primary dealer in Sri Lanka like NatWealth Securities Limited.
Interested in investing in Treasury Bills, Treasury Bonds and other fixed income securities in Sri Lanka? These are the eligible Investors to purchase Government Securities in Sri Lanka.
Foreign investments have to be routed through a SECURITIES INVESTMENT ACCOUNT (SIA) maintained in a licensed commercial bank in Sri Lanka.
Foreign Investors can purchase Government Securities through NatWealth Securities Limited at the weekly Treasury Bill auctions, periodic Treasury Bond auctions, or in the secondary market. Prevailing interest rates are market driven and are determined by key monetary, fiscal and other macro-economic factors. Our professionals will advise you regarding current interest rate trends and the most appropriate durations to invest.Guidelines/Procedures to Participating Agents on the purchase and sale of SLDB's issued by the Government of Sri Lanka to foreign investors and non-resident Sri Lankans
The benefits that could be derived by investing / trading through NWS are as follows:
Foreign investments in T-Bills & T-Bonds have to be routed through a SECURITIES INVESTMENT ACCOUNT (SIA) to be maintained in a commercial bank within Sri Lanka.
A Treasury Bill is a transferable instrument and is issued at a discount and the face value is paid at maturity with interest paid up-front. An investor can buy Treasury Bills either directly from commercial bank or from licensed primary dealers in Sri Lanka such as NatWealth Securities Limited. A Treasury Bill is one of the safest and most liquid investment opportunity available in Sri Lanka since the interest and maturity proceeds are guaranteed by the Government and the investment is secure as there is zero default risk. What's more since you can discount the Treasury Bill at any time, it is almost like having cash in your hand!
Features of Treasury Bills in Sri Lanka
Treasury Bonds are safe medium and long-term debt instruments issued by the Government of Sri Lanka of which the maturity period ranges from 2 to 30 years. Treasury Bonds have zero default risk, since the payment of interest and maturity proceeds are guaranteed by the Government and no withholding tax is deducted from the earnings. Unlike a Treasury Bill, the holder of a Bond will be entitled to semi-annual periodic interest payments (coupon interest) paid at a pre-determined fixed rate during the life of the bond. Treasury Bonds purchased through NatWealth Securities Limited have the added guarantee of being reliable, safe and absolutely transparent.
Features of Treasury Bonds in Sri Lanka
|Treasury Bonds Rates as at 11th September, 2019|
A Repo or Reverse Repo (Repurchase Agreements & Reverse Repurchase Agreements) is an arrangement where a Primary Dealer like NatWealth Securities Limited comes to an agreement with a client to borrow or lend funds against Treasury Bills or Treasury Bonds at a fixed rate, for a predetermined period. With a Repo or Reverse Repo, you can invest or borrow money for interim periods ranging from one day to the maturity of the underlying Treasury Bill or Treasury Bond.
Interest rates for Repos and Reverse Repos are determined by the supply and demand in the money market. These agreements are ideal to invest the excess funds on short-term basis at a higher interest rate than bank deposits. It is also cheaper to borrow funds on this agreement in an emergency. Treasury Bills or Treasury Bonds are used as collateral in Repo & Reverse Repo agreements. Therefore these agreements are safe as buying Treasury Bills/ Bonds outright.
Features of the Repurchase / Reverse Repurchase Agreements in Sri Lanka
Sri Lanka Development Bonds (SLDB's) are a debt instrument denominated in US Dollars issued by the Government of Sri Lanka in terms of the Foreign Loans Act, No.29 of 1957. Repayment is guaranteed by the Government of Sri Lanka.Guidelines/Procedures to Participating Agents on the purchase and sale of SLDB's issued by the Government of Sri Lanka to foreign investors and non-resident Sri Lankans