Ceylon Income Fund announces dividends

Ceylon Income Fund, the top performing fund in 2011 has announced a 13.2 % tax free dividend for the year. Ceylon Income Fund announced a dividend of Rs. 1.32 per unit to investors of Ceylon Income Fund in January 2012 the dividend represents the net return of the fund for 2011, net of taxes and all expenses.

Ceylon Income Fund recorded a gross return of 12.22% (11% net of tax) for year ended December 31, 2011, to emerge as the best performing Unit Trust Fund in Sri Lanka. The equivalent gross interest rate for a tax paying (at 28%) corporate investor is 15.28%. The Ceylon Income Fund invests only in corporate debt instruments issued by corporates, rated "Investment Grade", (BBB- or better) by Fitch or RAM ratings. The Trustee and Custodian of the Fund is Deutsche Bank while the fund is audited by Price Waterhouse Coopers.

The fund is licensed to operate under the regulatory framework of the Securities and Exchange Commission of Sri Lanka. Ceylon Asset Management is an associate company of Sri Lanka Insurance Corporation.

(SJ)