With 47 years of banking experience and the security and stability of a state bank, People’s Bank announced new initiative measures to Sri Lankan’s earning foreign currency, offering the best short term and long term investment opportunities through the Sri Lankan Rupee Treasury Bill and Bonds.

Under this scheme introduced by the Government of Sri Lanka People’s Bank offers the Rupee denominated Treasury Bill and bond. This initiative offers a safe and highly liquid investment opportunity to the Sri Lanka diaspora and migrant workers while providing an attractive return on their investments.

A Treasury Bill is a short term debt instrument issued by the Government of Sri Lanka under the local treasury bill ordinance with maturities of 91 days, 182 days and 364 days. A Treasury bond is a medium to long term debt instrument issued by the Government of Sri Lanka under the Registered Stock and Securities Ordinance with maturities of 2 - 10 years. As an Agent of the Government of Sri Lanka, the Public Debt Department of the Central Bank of Sri Lanka (CBSL) issues Treasury Bills/ Bonds and pays interest and maturity proceeds on due dates.

Customers of People’s Bank who live abroad now have the  opportunity to channel their investments through the Treasury Bill / Bond Investment External Rupee Account – Deshabhimani (TIERA-D) which can be opened by the investor for that purpose. All transactions relevant to these investments will be routed through this TIERA-D. The benefits of this offered by People’s Bank include, remittances into and out of the TIERA-D accounts would be free from exchange control. The investor can also enter into a Forward Exchange Contract with the bank if they wish to mitigate the exchange risk involved with their transactions. In addition to this, investor can look forward to a risk free, gilt edged debt instrument, maturity proceeds at face value paid on maturity, half yearly coupon payments for treasury bonds, yield rates determined by the market, tradable instrument in the secondary market amongst a host of others.

Vasantha Kumar, Senior Deputy General Manager – Treasury and International Business, People’s Bank speaking on the significance of this to the development of the country said, "This is a great investment opportunity for Sri Lankan’s living abroad to earn high return in concurrence with further empowering the government to go ahead with needed development projects in the country. Also, we are proud to note that People’s Bank has been appointed as one of the Joint Lead Managers to facilitate this endeavour." In addition, under the Central Bank’s new initiative measures, to promote inward remittances and to build the foreign exchange reserves to a high level, the Government of Sri Lanka has made necessary arrangements to pay a bonus interest in Sri Lanka rupees on the interest paid on Resident Foreign Currency and Non Resident Foreign Currency accounts with effect from February 1, 2009.

The bonus paid will be the rupee equivalent of 20% of the foreign currency interest that accrues on deposits. This will be credited to a rupee account opened in the name of the account holder or to any other account nominated by the account holder. Further, the interest bonus will be exempt from any income tax deductions. The aim of this initiative is to promote inflows of foreign remittances in to Sri Lanka through banking channels as well to promote the general public to deposit any foreign currencies held. People’s Bank offers ‘Ethera Isura’ NRFC account, which is a wise investment for Foreign Exchange earners that offers special benefits and ‘Doo Daru Ethera Isura’ NRFC accounts to children that will help education overseas and RFC accounts for residing Sri Lankans who receive foreign exchange that will benefit from this new bonus interest offer.