Treasury Bills are 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 primary dealers.
The Essentials
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Interest and maturity proceeds are guaranteed by the Government
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Your investment is secure as there is zero default risk
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Sure security of returns tradability leading to instant liquidity
Treasury Bill is a transferable instrument, where your ownership can be transferred at any time by you. This makes it the safest and most liquid investment opportunity available in the country. Since you can discount the Treasury Bill at any time, it is almost like having cash in your hand.
Treasury Bills are issued at a discount and the face value is paid at maturity with interest paid up front.
You can buy Treasury Bills which are issued at three, six and twelve month maturity periods, either directly from Commercial Bank or from primary dealers.
Benefits of Treasury Bills
Issued by the Government and is 100% risk free.
Market determined yield rates enabling you to receive the highest possible interest rates.
Treasury Bills are tradable in the secondary market providing you with instant liquidity by sale.
You can make joint investments making Treasury Bills the ideal way to share wealth with loved ones.
No taxation and no stamp duty.
All transactions will be by means of state-of-the-art scrip less security settlement systems and the fully automated Central Depository System (CDS).
Eligibility
a. Resident individuals and corporate bodies incorporated in Sri Lanka.
b. Foreign institutional investors including country funds, regional funds or mutual funds.
c. Corporate bodies incorporated outside Sri Lanka.
d. Citizens of foreign states whether resident in Sri Lanka or outside Sri Lanka.
e. Non resident Sri Lankans.
are eligible to apply for Treasury Bills.
If you fall in to the category of investors from c to e as mentioned above, you should invest through Securities Investment Account and securities will be allocated for same after inquiring the availability in the leeway from the Central Bank.
Placing a Treasury Bill
You can visit a branch of your choice and discuss your requirement with an officer.
Interest rates applicable for Treasury Bills can be viewed through the rates and tariffs page of this site.
Please fill the relevant application form and hand it over to the branch. Remember to take your national identity card, driving license or passport. This is necessary for us to identify you.
Withdrawals
Once a formal request is forwarded to the Treasury Department, your Treasury Bills will be discounted based on the market rates.
Terms & Conditions apply
Product information and terms & conditions are subject to change from time to time.
Therefore, it is advisable to contact the branch nearest to you for the latest information and prevailing terms & conditions.
