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Sri Lankan migrants to be allowed to invest in government securities

Sanket Mohapatra's picture

Sri Lanka recently announced that it would open up the government securities market for its migrants abroad. Sri Lankan diaspora and migrant workers would be allowed to invest in rupee denominated treasury bills and treasury bonds.

The press release by the Sri Lanka central bank suggests that this measure “…is expected to widen the investor base, diversify the Government Securities market, make it more convenient for Sri Lankans living abroad to access Government Securities, and to create a more stable Government securities market. This scheme will also provide a safe and highly liquid investment opportunity for Sri Lankans living abroad, while providing them with an attractive return on their investments.”

Comments

Submitted by Sonia on
Following on its previous announcement, the Central Bank of Sri Lanka is targeting its diaspora abroad to raise $ 500 million to invest in government securities. "We have a target of approximately around $500 million in the year from over 1.5 million Sri Lanka diaspora," Ajith Nivaard Cabraal, central bank governor told a news conference. See the following news for more details: http://in.reuters.com/article/domesticNews/idINCOL41567920090202?pageNumber=2&virtualBrandChannel=0&sp=true http://www.lankabusinessonline.com/fullstory.php?nid=435672348

Submitted by Sonia on
Following on the announcement by the government, the Central Bank of Sri Lanka is conducting a road show to promote this investment scheme to ist diaspora. In order to eliminate credit risk to investors, the Central Bank Governor has announced: “We will have a separate sinking fund, up to 100% of the value of the diaspora funds. So for every dollar that comes in, we will put a dollar in the fund. The Central Bank will release foreign exchange from this fund, when people want to take back their money,” said Deputy Governor of the Central Bank, W A Wijewardena, speaking at the launch of the new investment scheme for the Sri Lankan diaspora, on Monday. See (http://www.sundaytimes.lk/090208/FinancialTimes/ft309.html)

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