What is a Treasury Bill / Treasury Bond?

A Treasury Bill is a short term debt instrument issued by the Government of Sri Lanka under the local Treasury Bill Ordinance with maturities of 91 days, 182 days, 364 days.

Government issues Treasury Bills through weekly auctions and interest is decided based on the bids received by Central bank.

Treasury Bills are issued at discount prices. Minimum investment is Sri Lanka Rupees 10,000

A Treasury Bond is a medium to long term debt instrument issued by the Government of Sri Lanka under the Registered  Stock and Securities Ordinance with maturities of 2 – 10 years.

Treasury Bonds are not issued on regular basis but all issues are announced well in advance including Central Bank web site. Interest is paid semi-annually and minimum investment is Sri Lanka Rupees 500,000.

Eligible Investors to  open a TIERA-D Account

• Sri Lankans who have made their permanent residence overseas (Non-residents)
• Citizens of Sri Lanka who have taken up overseas employment or set up business
• 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
• Banks acting in fiduciary capacity on behalf of the above categories

Foreign citizens of Sri Lankan origin also can invest in Government securities.

Why Government securities are attractive for investments

• Today, interest earnings on foreign currency deposits are as low as 0-2% per annum at current interest rates abroad.  Higher interest rates are offered for Sri Lankan Government Securities.
• The very special feature in this investment is the ability to re –convert your investment (including interest) into any major foreign currency without any exchange control restrictions.
• Conversion can be done at the time of maturity or prior to maturity.
• The repayment of capital and interest of investment is guaranteed by the Government of Sri Lanka.
• On maturity you can reinvest or convert to foreign currency and remit either to your NRFC account or to any account outside Sri Lanka as well. You can use TIERA accounts to transfer funds to your relatives or others in Sri Lanka on periodical  basis.
• No tax and stamp duty payable on your investment in Sri Lanka.
• Highly liquid and tradable in the secondary market.
• Ability to book Forward Exchange Contracts to mitigate currency risk.

How to open a TIERA -D Account with BoC 

• Download application      TIERA –D Application

• Fax or e-mail scanned copy of the application and the photocopy of the personal detail page of your passport. Forward the original copies by post to

           Chief Manager – Treasury
                      Bank of Ceylon
                      Treasury Division
                      7th Floor
                      4 Bank of Ceylon Mawatha
                      Colombo 1
                      Sri Lanka 

     The account number  will be notified to you by e-mail.

How to make the investment in Government Securities

• Remit money through any of our Overseas Correspondent Bank /Agent to your TIERA-D account with us
  (Our SWIFT code: BCEYLKLX)

  On receipt, money will be converted to Rupees at prevailing exchange rates and credited to your TIERA-D account.

• Send investment instructions using the Treasury Bill/Bond application form.
  
  Download application Treasury Bill / Treasury Bond
  
  
• BOC will invest your money in Government securities and confirm the investment details by e-mail/post.

On Maturity

• On maturity of your investment, proceeds will be credited to your TIERA-D account. Please note to send your re-investment instructions prior to maturity date, for us to purchase Treasury Bills/Bonds from CBSL.
  Please note, in the absence of fresh instructions we will act on your previous instructions.
  
  
• If you wish to get the money back at maturity, please send us instructions indicating account details. Funds will be converted to foreign currency at the prevailing exchange rate on the date of conversion and remitted to your designated account.

For Further information you may contact the undersigned

Jayasuriya / Jayashantha / Jeewantha / Mithila

Treasury Division

Tel : 094-11-2471605

     094-11-2395804

Fax : 094-11-2445788

E-mail : cmt@boc.lk / alm@boc.lk

Further clarifications on Government securities, can also be obtained from Central Bank of Sri Lanka via website www.cbsl.gov.lk