Govt invites Lankans abroad to help build nation

BY CHANNA Kasturisinghe

IN keeping with the budget 2006 the Government yesterday announced the launch of foreign currency denominated Government Bonds giving an opportunity for Sri Lankans overseas to contribute to the nation building effort.

The Secretary to the Treasury Dr. P.B. Jayasundera said the entire proceeds of the Bond issue will be utilised for infrastructure development in the country.

The initial issue to the value of US$ 25 million will be issued to Sri Lankans who are residents overseas and those who work abroad and earn foreign exchange.

"This five year bond issue will also enable Sri Lankan expatriates to invest their earnings on a long term basis. They can make a minimum investment in issuing currencies which is US dollars 500, Sterling Pounds 250 or Euro 500," Jayasundera said.

The rate of interest payable on the Bonds is the previous six months average of US Government Securities in the case of US dollar investments, UK Government Securities in the case of Sterling Pound investments and German Government Securities in the case of Euro investments with a five year tenure.

Dr. Jayasundera said the earnings from this Bond are exempted from income tax, withholding tax or any other taxes applicable in the Sri Lankan tax law.

The Bond holders are entitled to import a vehicle of their choice with a payment of 25 percent of all duties and taxes applicable to import of the vehicle.

The custodian bank to the issue is the Deutsche Bank, Colombo and the lead manager is the Bank of Ceylon. Applications and Terms of Offer Documents can be obtained from the two banks and the Public Debt Department of the Central Bank of Sri Lanka or the Central Bank Web site.