Treasury Bonds attract foreign investors

As a measure of further enhancing the freedom of capital account transactions, the Government has decided to increase the foreign investment in rupee denominated Treasury Bond market from the existing limit of 5 per cent of the outstanding Treasury Bond stock to 10 per cent level.

Accordingly, foreign investors including foreign country funds, mutual funds of regional funds approved by the Securities and Exchange Commission (SEC) of Sri Lanka, corporate bodies incorporated outside Sri Lanka and citizens of foreign states are now eligible to make investments up to 10 per cent of the outstanding Treasury Bonds.

This measure will enhance the development of the capital market by broadening the investor base and increasing competition in the Bond market.