SLNBB: an opportunity for all to participate in nation building
In a move to facilitate Sri Lankans living overseas to invest in
their motherland, the Government of Sri Lanka has decided to embark on a
fresh publicity campaign for the Sri Lanka Nation Building Bonds (SLNBB).
According to this project patriotic Sri Lankans who live abroad and
wish to participate in the nation building process, get an opportunity
to invest. These investments in SLNBBs would give them a good return
with a Government guarantee.
Already copies of a publicity brochure prepared by the Central Bank
of Sri Lanka on behalf of the Government have been sent to Sri Lankan
embassies in various parts of the world requesting them to organise
meetings with the Sri Lankans living in their respective countries.
At these meetings the brochures will be distributed and they will be
explained of the importance of investing in SLNBBs. The following are
the details given in the brochure.
SLNBB: Sri Lanka Nation Building Bond (SLNBB) is a new sovereign
investment instrument which provides the opportunity for Sri Lankans
living overseas to contribute for the economic development of the
This is a good opportunity for patriotic Sri Lankan citizens to
participate in the nation building process through contributing to the
future growth and development of the country. Am I eligible to invest in
Yes, if you are a Sri Lankan:
a) who has taken up foreign country citizenship
b) with a permanent residence overseas
c) working overseas or set up business overseas
d) with dual citizenship
e) professional living in Sri Lanka or overseas who is earning income
in foreign currency
Salient Features of SLNBBs
In what currencies can the investment be made?
Is there a minimum investment?
What is the tenure of SLNBBs?
A period of five (5) years.
Is the bond tradable/ transferable before maturity?
Yes. You can sell and transfer the SLNBB to an eligible investor by
registering with the Public Debt Department of the Central Bank of Sri
What is the interest rate on SLNBBs?
* Interest is payable semi-annually at (variable) market rates based
on five years US Government, UK Government or German Government bonds,
* Both interest and principal on SLNBBs are fully repatriable.
What else? Any tax benefits?
* Interest on SLNBBs are fully exempted from income tax, withholding
tax and stamp duty.
* You will also be entitled to a duty concessionary vehicle permit if
you invest US Dollars 50,000 or more. (20% of the investment value is
granted as CIF value, subject to a maximum CIF value of USD 35,000).
Is there a certificate being issued for SLNBBs?
SLNBBs will be issued in scripless form.
However, the Central Bank will confirm the acceptance of your
application and Deutsche Bank will confirm the receipt of your
Can I hold my SLNBB with a joint holder?
Yes. Investors can hold SLNBBs individually or jointly. Interest and
principal are paid to the person whose name appears first in the
Who is the Custodian Bank?
Deutsche Bank AG, Colombo is the custodian bank for SLNBBs. It
maintains records of all investors and makes payments of interest and
capital on due dates.
Is there a Lead Manager for this issue?
Yes, The Bank of Ceylon will assist to channel money from the
patriotic Sri Lankans by deploying a marketing plan.
How can I invest in the SLNBBs?
Apply now. An application form is attached to the brochures. You may
also download the application form from the CD given in the back cover
of the brochures or visit the Central Bank website: www.cbsl.lk.
When shall I transfer the Funds?
You may transfer the funds to our account at Deutsche Bank AG,
Colombo at the time of submitting the application to the Central Bank.
Please indicate the purpose of remittance as "Subscription to the
Government of Sri Lanka SLNBBs". (NRFC Funds are not eligible to be
invested in SLNBBs).
How do I transfer funds?
Eligible investors can transmit funds to Central Bank account through
the branch network of the Deutsche Bank AG directly or through their
correspondent banks or any commercial bank by remitting the funds to the
following bank accounts indicating the purpose as "Subscription to the
Government of Sri Lanka SLNBBs".
1. US Dollar investments
Name of the Bank:
Deutsche Bank Trust Co.,
Americas, New York,
(SWIFT: BKTRUS 33)
P.O. Box 318, Church Street Station, N.Y., New York 10008-0318
A/C No. 04-422-614-DB Colombo
2. Sterling Pound investments
Name of the Bank:
Deutsche Bank, London
6, Bishopsgate, P.O. Box 441, London
EC 2P 2AT, England
A/C No. 0341743-0000-GBP-000-LDN-DB
3. Euro investments
Name of the Bank:
Deutsche Bank, Frankfurt
TZE - Bankenabteilung, Postfach 5223,
D-6236 Eschborn, Germany
A/C No. 9572900-DB Colombo
Where will my money be invested?
Your funds will be mainly invested in infrastructure development
projects. The government's vision and action plan for the future, the 'Mahinda
Chintana' has identified several key infrastructure development
* Northern Expressway
* Coal Power Plant - Norochcholai
* Puttalam - Anuradhapura Main Road
* Kalpitiya Tourist Zone
* Puttalam - Padeniya Main Road
* Southern Expressway
* Hambantota Port
* Trincomalee Tourist Zone
* Coal Power Plant - Trincomalee
* Tsunami affected coastal belt highways and townships
* Habarana - Trincomalee Main Road
* Greater Dambulla Development Project
* Weerawila International Airport
The Government's development plan is based on the following seven
areas as described in the 'Mahinda Chinthana':
A Caring Society
A framework to promote local values: social protection for women,
children, elderly and differently able people and vulnerable groups in
the society, respect for human rights, and good governance.
A community based integrated rural development initiative to empower
Decentralised Decision Making
An efficient delivery mechanism at district and divisional levels and
greater coordination with local authorities to cater to public needs.
A national infrastructure development initiative (electricity,
highways, irrigation, water supply, ports and airports, transport,
townships and investment zones) to provide modern infrastructure to
promote nationwide regional economic development and create new
opportunities for investment and employment creation.
Private - Public Partnership
Private and public sector participation in economic and social
development within a market friendly, export oriented and competitive
economic policy framework to complement each other's contribution,
maximise value addition, employment creation and environmental
A Strong Domestic Economy
An economy based on efficient use of local resources to maximise
production of goods and services, for both domestic and international
markets, as well as sustained improvements in agricultural, industrial
and service sectors with a productive contribution towards economic
Macro economic strategies based on prudent budgetary and financial
policies to promote savings, investments and to maintain high economic
growth within a stable economic environment.
The 'Mahinda Chintana' aims at directing the economy to a very high
Structure of the Economy
Sri Lanka's economy is dominated by the services sector, with a
sizeable presence in industry and agriculture.
The services sector includes trade, port, telecommunication,
financial, tourism and business services.
During the last five decades, private sector industries have expanded
rapidly in a competitive macroeconomic environment with the promotion of
export-oriented industries. The development of the industrial sector has
created a significant number of employment opportunities, particularly
in the apparel sector.
Sri Lanka is the main exporter of tea, and is the largest producer
and exporter of cinnamon, contributing to about 90% of the world
cinnamon supply. The country also exports rubber products and is the
world's largest producer of solid rubber tyres for off-road vehicles.
Resilience of the Economy
The economy grew by 6% in 2005, followed by a remarkable growth of 8%
in the first half of 2006. The country's economy is poised to grow by
over 7% in 2006, and above 8% in the medium term.
Such resilience is attributed to the existence of strong
institutional structures and legal frameworks and the high level of
human capital development.
Sri Lanka has also maintained sound macroeconomic policies, and
thereby minimised the country risk. Sri Lanka enjoys a sovereign rating
of BB- from Fitch Rating and B+ from Standard & Poor.