rightBETA Treasury Bill Guide

What are Treasury Bills?

Treasury bills are short term debt instruments of 3, 6 or 12 Months issued by the Government of Sri Lanka. Treasury Bills are discounted instruments - you pay the discounted value (investment value) and receive the face value on maturity.

What are Treasury Bonds?

Treasury Bonds are medium to long term debt instruments of 2 to 20 Years issued by the Government of Sri Lanka. Treasury Bond carries a coupon (interest) which is paid on a half yearly basis, and the principal is repaid on maturity.

How Can I Invest in Treasury Securities?

You can purchase Treasury Bills/Bonds either from auctions in the primary market through a designated Primary Dealer on specified dates, or from the secondary market through Primary Dealers^Find
or Commercial Banks^Find

Who Issues Treasury Bills?

The Central Bank of Sri Lanka (CBSL) issues the Treasury bills and repays maturity proceeds on maturity.

What are the Main Features of Treasury Bills?

- Risk free debt instruments

- Short term debt instruments

- Maturity proceeds (Face value) will be paid at maturity

- Yield rates are determined by the market

- Can be traded in the secondary market

What do you mean by risk free?

As treasury bills are issued by the government of Sri Lanka, there is no risk of default. Due to this reason, treasury bills are known as risk free instruments. Good for very cautious investors.

What are the benefits of investing in Treasury Bills?

- It is an absolutely risk free investment. You don’t need to worry about the government becoming bankrupt

- You can get the highest rate of interest since the yield rates are determined in the market.

- Since these bills are tradable in the secondary market, you can obtain instant liquidity by selling them.

- All receipts of maturity proceeds and capital gains are fully remittable

- You could also share your investments with loved persons.

- You are not subject to a withholding tax of 10 percent as government securities are exempt from tax.

- No stamp duty is payable on these bills.

How Can I Apply for Treasury Bills?
You can purchase Treasury bills at any time through Primary Dealers^Find
or Licensed Commercial Banks^Find

Can I compare the deals on Treasury bills before I purchase?
Yes, you need to be aware of the providers’ requirements before you actually purchase Treasury bills. Certain providers have certain requirements such as minimum amount, notice period etc. As a result, it’s absolutely important to compare the providers first.

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