Do you know about Government Securities and its benefits?

Government Securities (Treasury Bills and Bonds) are debt instruments issued by Central Bank of Sri Lanka on behalf of the Government of Sri Lanka. These instruments come in different maturities, where instruments with less than one-year maturity are called Treasury Bills and the instruments with maturity of more than one year are called Treasury Bonds. If a person is more concerned about the risk involved in an investment, Government Securities are the best and timely investment, since these are considered as risk-free instruments.

Treasury Bills and Treasury Bonds

Treasury Bills are available in 91 Day, 182 Day and 364 Day maturities whereas, Treasury Bonds are available in 2- to 30-year maturities.

Treasury Bills are issued at discounted price and paid with face value at the maturity of the investment. Treasury Bonds carry biannual coupon payments in addition to the face value paid at maturity.

Benefits of investing in Treasury Bills and Bonds

• These are risk-free investments issued by the Sovereign Government.
• Tradable instruments in the secondary market. Therefore, it is possible to obtain instant liquidity by selling them in the market.
• Possibility to make investments individually or jointly with another party.
• Govt. Securities are exempted from some of the taxes, CESS or Stamp duty.
• Treasury Bills and Bonds can be used as a collateral for short term lending (Repurchase agreement – Repo) and for short term borrowings (Reverse Repurchase agreements – Reverse Repo).

Investors can purchase Treasury Bills and Bonds through a Licensed Primary Dealer or through any licensed commercial banks in Sri Lanka.

Do you know about NSB Fund Management Company Ltd.?

The NSB Fund Management Company Ltd. (NSB FMC) is a Licensed Primary Dealer appointed by Central Bank of Sri Lanka which comes under the strong wings of a State-Owned Bank and operates as a fully-owned subsidiary of National Savings Bank (NSB). The NSB FMC is always in line with the best business practices of its parent and has the privilege of serving the wide range of customer base with a large portfolio in Government Securities.

NSB FMC operates for more than two decades in the Government Securities market and becomes one of the main Primary Dealers among other standalone Primary Dealer companies in the Government Securities market in Sri Lanka.

We are with a wide range of a customer base, comprises of small-scale investors, high net worth individuals, institutional investors, and large-scale investment funds in Sri Lanka.

What we offer to you?

Our Vision is “To be the most trusted Primary Dealer in Sri Lanka”, for which our NSB FMC Team is dedicated to offer an efficient and customised services to our valuable customers.

We offer the following products and services:

• Buy/sell Government Securities through Secondary Market

Buying and selling of government securities can be made with us at attractive interest rates. Investments can be initiated with a minimum of Rs. 10,000.

• Purchase Government Securities from Primary Auction

Participation in Government Securities Primary Auction can also be done through NSB FMC. Bids with a minimum value of Rs. 5 million can be made at the primary auction.

• Investments in Repurchase Agreements (Repos)

Investments can be made in short term maturities at an attractive interest rate. Selection of maturity dates are starting from overnight (one day) to one-year period. Repo investments can be initiated with a minimum of Rs. 10,000 and are collateralised with government securities.

• Investments in Sri Lanka Development Bonds (SLDB) denominated in US Dollars

NSB FMC was appointed by the Central Bank of Sri Lanka to acts as one of the designated agents for Sri Lanka Development Bonds (SLDB) denominated in US Dollars issued by Central Bank of Sri Lanka.

Investments *in Sri Lanka Development Bonds (SLDB) denominated in US Dollars can be made through us.

*for details of eligibility and amount of investment visit https://www.cbsl.gov.lk/en.

• Trustee Services

For Assets-backed securitisation and Debenture issues, we provide trustee services to our corporate customers.

• Custodian services

We provide custodian services on behalf of corporate clients.

• Portfolio management services

We manage your wealth through well-structured portfolio and assure a reasonable return to your investment.

• Investments in Corporate Debenture

We are a licensed Debt Dealer in the Colombo Stock Exchange and investors can invest in Corporate Debentures through us.

NSB FMC new initiatives

With the new initiative of NSB FMC, from February 2022 onwards, you can visit to our NSB FMC website and will be able to open an investment account online. Also, you can view most updated interest rates in Government securities for your investment decisions and much more from the website.