SERvices

  • Treasury Bills
  • Treasury Bills

    Treasury Bills (T-Bills) are zero default-risk, extremely liquid money market instrument, issued by the government of Sri Lanka through the Central Bank of Sri Lanka (CBSL), to finance their short-term debt requirements and obligations. Having a higher degree of tradability in the secondary market, T- Bills also act as a benchmark for the short-term credit market.

    T-Bills are auctioned on a consistent schedule, normally on a Wednesday of each week by the Central Bank for periods of 3, 6 & 12 months through a competitive electronic bidding system. Investors can place their competitive bids for the Primary auctions through CBSL approved Primary Dealers.

    T-Bills are discount instruments as the investor gets its interest upfront. This means that the interest promised on a T-Bill instrument is payable on the very day the investment commences. For instance, if a one year T-Bill promises a 10.00% rate per annum and an investor wants to put in Rs.100,000, the investor pays only Rs.90,000 on the day of investment but gets back Rs.100,000 at maturity. The maturity value (Rs.100,000) is referred to as the face value while the initial investment (Rs.90,000) is referred to as the discount value.

    Treasury Bill Rates

    As of 2021-09-26
    Duration Bid(%) Offer(%)
    3 Months 6.65 6.15
    6 Months 6.75 6.2
    12 Months 6.85 6.25

    FAQ

    Can I borrow against my investment?

    Yes. Any owner of a T-Bill can borrow against it by pledging it as collateral at a fixed rate. The borrowing period can be a lesser duration than the T-Bill investment period. The borrowing rate will depend on the market interest rate at that time.

    Can I realize capital gains?

    Yes. If the market interest rates drop below your purchase yield, an investor can realize capital gains by selling the T-Bill.

    Will I get a certificate for my T-Bill investments?

    All T-Bills are issued in scripless form without a paper certificate.

    Can I transfer the ownership?

    Yes. Ownership of a T-Bill can be transferred easily to another.

    Can I place a bid for the Treasury Bill auction through you?

    Yes. Our well experienced team will guide you and advice you based on current market and economic condition to ensure you receive the highest yield of acceptance.

    Are the T-Bills interest income liable for WHT?

    No. No Withholding Tax will be deducted from the earnings.

    Are the T-Bills income liable for Income Tax?

    Yes. If you are an income tax payer.

  • Treasury Bonds
  • Treasury Bonds

    A Treasury Bond (T-Bond) is a zero default-risk, extremely liquid medium to long term debt instrument issued by the CBSL which consists of maturity period ranging from 2 to 25 years with semiannual coupon payments.

    Unlike a T-Bill, the holder of a T-Bond will be entitled to semi-annual periodic interest payments (coupon interest) which are paid at a predetermined fixed rate and a date during the life of the T-Bond. Depending on the yield and the coupon rate, the price (per 100 rupees) of a T-Bond, can either be more than Rs. 100 (premium) or below Rs. 100(discount).

    While offering higher return than other fixed income investments, T-Bond investments can be liquidated instantly by way of the secondary market. T-Bonds provides excellent opportunities of enhancing returns by earning capital gains by way of trading and are available in almost any duration and are accepted as collateral in the banking system.

    Treasury Bond Rates

    As of 2021-09-26
    Duration Bid(%) Offer(%)
    1 Year 7.05 6.3
    2 Years 7.95 7.35
    3 Years 8.5 8.25
    4 Years 9.05 8.45
    5 Years 9.45 9.05
    6 Years 9.95 9.45
    7 Years 10.05 9.45
    8 Years 10.15 9.75
    9 Years 10.3 10
    10 Years 0 0

    FAQ

    Can I borrow against my investment?

    Yes. Any owner of a T-Bond can borrow against it by pledging it as collateral at a fixed rate. The borrowing period can be a lesser duration than the T-Bond investment period. The borrowing rate will depend on the market interest rate at that time.

    Can I realize capital gains?

    Yes. If the market interest rates drop below your purchase yield, an investor can realize capital gains by selling the T-Bond.

    Will I get a certificate for my T-Bond investments?

    All T-Bonds are issued in scripless form without a paper certificate.

    Can I transfer the ownership?

    Yes. Ownership of a T-Bond can be transferred easily to another.

    Can I place a bid for the T-Bond auction through you?

    Yes. Our well experienced team will guide you and advice you based on current market and economic condition to ensure you receive the highest yield of acceptance.

    Are the T-Bonds interest income liable for WHT?

    No. No Withholding Tax will be deducted from the earnings.

    Are the T-Bonds income liable for Income Tax?

    Yes. If you are an income tax payer.

  • SLDB
  • Sri Lanka Development Bonds (SLDB)

    Sri Lanka Development Bonds (SLDB) are debt instruments denominated in USD, issued by the Government of Sri Lanka through competitive bidding, as an when required. These dollar denominated Sri Lankan Government Bonds have tenures ranging from 3 months up to 5 years.

    With interest paid semi-annually, they offer a good alternative investment to dollar deposits and are easily repatriable at maturity or prior if discounted and are government guaranteed.

    The minimum investment starts with USD 10,000 & in multiples of USD 10,000 while interest will be calculated based on a fixed or floating margin. The floating benchmark is based on the London Inter-Bank Offered Rate (LIBOR).

    SL Development Bonds are issued in scrip form.

    FAQ

    Can I get the interest paid in Rupees?

    No. However, if the interest gets deposited to a local foreign currency account, you can borrow Rupees against it.

    Is it possible to invest under joint names?

    Yes. Joint accounts can be created for the investments.

    What happens if I lose my citizenship midway?

    Dual citizens can invest. If you lose your Sri Lankan citizenship you can continue to invest as a foreign national. In addition, non-resident Sri Lankans can invest as well.

  • Repo
  • Repurchase Agreements (Repo)

    Repurchase Agreements (Repo) are a short-term arrangement to sell securities at a specific price with a commitment to buy it on a predetermined date at a fixed price. From the securities buyer’s viewpoint this agreement is called as a Reverse Repo. Repos and Reverse Repos are used for short-term borrowing and lending, often overnight.

    Fast moving and versatile, these agreements are perfect for secured short-term borrowing and lending at very competitive rates. These short term instruments spanning from overnight to one year are backed by gilt-edged collateral.

    Repo / Reverse Repo Rates

    As of 2021-09-26
    Duration Bid(%) Offer(%)
    Overnight 5.25 7.05
    1 Week 5.4 7.2
    2 Weeks 5.4 7.2
    1 Month 5.5 7.3
  • Trading Portfolios
  • Trading Portfolios

    Optimizing capital growth by trading as opposed to awaiting maturity, the robust trading options by Wealth Trust helps investors create more wealth converting investments into trading opportunities, backed by their experienced and knowledgeable team, who provides market surveillance, intelligent data analysis to help make the right investments that generate the maximum returns.

    Wealth Trust is willing to share its expert knowledge on T Bill/Bond trading to enhance your yield.

    FAQ

    Will you do the trading for me?

    Yes. A designated portfolio manager will be assigned to you.

    How will I know I am not losing money?

    We will calculate a Mark to Market (M to M) return on your portfolio on a daily basis and monitor your returns.

    What is the opportunity cost of trading?

    If you carry out a non-leverage trading portfolio, then the only opportunity cost would be if interest rates increase above your purchase yields for a prolonged period (M to M losses). However, leverage portfolio carries the risk of negative funding gains along with possible erosion of capital.

  • Corporate Debt Trading
  • Corporate Debt Trading

    As a Licensed Stock Dealer in debt under section 20 of the Securities and Exchange Commission of Sri Lanka, we are able to trade in Corporate Debt securities via a uniform trading platform (ATS).

    FAQ

    Can a client buy or sell corporate debt through Wealth Trust?

    Yes. Wealth Trust can facilitate corporate debt investments. In addition, as we are market makers, we would be able to quote a two-way price (buy & sell) at any given time.

Treasury Bills

Treasury Bills (T-Bills) are zero default-risk, extremely liquid money market instrument, issued by the government of Sri Lanka through the Central Bank of Sri Lanka (CBSL), to finance their short-term debt requirements and obligations. Having a higher degree of tradability in the secondary market, T- Bills also act as a benchmark for the short-term credit market.

T-Bills are auctioned on a consistent schedule, normally on a Wednesday of each week by the Central Bank for periods of 3, 6 & 12 months through a competitive electronic bidding system. Investors can place their competitive bids for the Primary auctions through CBSL approved Primary Dealers.

T-Bills are discount instruments as the investor gets its interest upfront. This means that the interest promised on a T-Bill instrument is payable on the very day the investment commences. For instance, if a one year T-Bill promises a 10.00% rate per annum and an investor wants to put in Rs.100,000, the investor pays only Rs.90,000 on the day of investment but gets back Rs.100,000 at maturity. The maturity value (Rs.100,000) is referred to as the face value while the initial investment (Rs.90,000) is referred to as the discount value.

Treasury Bill Rates

As of 2021-09-26
Duration Bid(%) Offer(%)
3 Months 6.65 6.15
6 Months 6.75 6.2
12 Months 6.85 6.25

FAQ

Can I borrow against my investment?

Yes. Any owner of a T-Bill can borrow against it by pledging it as collateral at a fixed rate. The borrowing period can be a lesser duration than the T-Bill investment period. The borrowing rate will depend on the market interest rate at that time.

Can I realize capital gains?

Yes. If the market interest rates drop below your purchase yield, an investor can realize capital gains by selling the T-Bill.

Will I get a certificate for my T-Bill investments?

All T-Bills are issued in scripless form without a paper certificate.

Can I transfer the ownership?

Yes. Ownership of a T-Bill can be transferred easily to another.

Can I place a bid for the Treasury Bill auction through you?

Yes. Our well experienced team will guide you and advice you based on current market and economic condition to ensure you receive the highest yield of acceptance.

Are the T-Bills interest income liable for WHT?

No. No Withholding Tax will be deducted from the earnings.

Are the T-Bills income liable for Income Tax?

Yes. If you are an income tax payer.

Treasury Bonds

A Treasury Bond (T-Bond) is a zero default-risk, extremely liquid medium to long term debt instrument issued by the CBSL which consists of maturity period ranging from 2 to 25 years with semiannual coupon payments.

Unlike a T-Bill, the holder of a T-Bond will be entitled to semi-annual periodic interest payments (coupon interest) which are paid at a pre-determined fixed rate and a date during the life of the T-Bond. Depending on the yield and the coupon rate, the price (per 100 rupees) of a T-Bond, can either be more than Rs. 100 (premium) or below Rs. 100(discount).

While offering higher return than other fixed income investments, T-Bond investments can be liquidated instantly by way of the secondary market. T-Bonds provides excellent opportunities of enhancing returns by earning capital gains by way of trading and are available in almost any duration and are accepted as collateral in the banking system.

Treasury Bond Rates

As of 2021-09-26
Duration Bid(%) Offer(%)
1 Year 7.05 6.3
2 Years 7.95 7.35
3 Years 8.5 8.25
4 Years 9.05 8.45
5 Years 9.45 9.05
6 Years 9.95 9.45
7 Years 10.05 9.45
8 Years 10.15 9.75
9 Years 10.3 10
10 Years 0 0

FAQ

Can I borrow against my investment?

Yes. Any owner of a T-Bond can borrow against it by pledging it as collateral at a fixed rate. The borrowing period can be a lesser duration than the T-Bond investment period. The borrowing rate will depend on the market interest rate at that time.

Can I realize capital gains?

Yes. If the market interest rates drop below your purchase yield, an investor can realize capital gains by selling the T-Bond.

Will I get a certificate for my T-Bond investments?

All T-Bonds are issued in scripless form without a paper certificate.

Can I transfer the ownership?

Yes. Ownership of a T-Bond can be transferred easily to another.

Can I place a bid for the T-Bond auction through you?

Yes. Our well experienced team will guide you and advice you based on current market and economic condition to ensure you receive the highest yield of acceptance.

Are the T-Bonds interest income liable for WHT?

No. No Withholding Tax will be deducted from the earnings.

Are the T-Bonds income liable for Income Tax?

Yes. If you are an income tax payer.

Sri Lanka Development Bonds (SLDB)

Sri Lanka Development Bonds (SLDB) are debt instruments denominated in USD, issued by the Government of Sri Lanka through competitive bidding, as an when required. These dollar denominated Sri Lankan Government Bonds have tenures ranging from 3 months up to 5 years.

With interest paid semi-annually, they offer a good alternative investment to dollar deposits and are easily repatriable at maturity or prior if discounted and are government guaranteed.

The minimum investment starts with USD 10,000 & in multiples of USD 10,000 while interest will be calculated based on a fixed or floating margin. The floating benchmark is based on the London Inter-Bank Offered Rate (LIBOR).

SL Development Bonds are issued in scrip form.

FAQ

Can I get the interest paid in Rupees?

No. However, if the interest gets deposited to a local foreign currency account, you can borrow Rupees against it.

Is it possible to invest under joint names?

Yes. Joint accounts can be created for the investments.

What happens if I lose my citizenship midway?

Dual citizens can invest. If you lose your Sri Lankan citizenship you can continue to invest as a foreign national. In addition, non-resident Sri Lankans can invest as well.

Repurchase Agreements (Repo)

Repurchase Agreements (Repo) are a short-term arrangement to sell securities at a specific price with a commitment to buy it on a predetermined date at a fixed price. From the securities buyer’s viewpoint this agreement is called as a Reverse Repo. Repos and Reverse Repos are used for short-term borrowing and lending, often overnight.

Fast moving and versatile, these agreements are perfect for secured short-term borrowing and lending at very competitive rates. These short term instruments spanning from overnight to one year are backed by gilt-edged collateral.

Repo / Reverse Repo Rates

As of 2021-09-26
Duration Bid(%) Offer(%)
Overnight 5.25 7.05
1 Week 5.4 7.2
2 Weeks 5.4 7.2
1 Month 5.5 7.3

Trading Portfolios

Optimizing capital growth by trading as opposed to awaiting maturity, the robust trading options by Wealth Trust helps investors create more wealth converting investments into trading opportunities, backed by their experienced and knowledgeable team, who provides market surveillance, intelligent data analysis to help make the right investments that generate the maximum returns.

Wealth Trust is willing to share its expert knowledge on T Bill/Bond trading to enhance your yield.

FAQ

Will you do the trading for me?

Yes. A designated portfolio manager will be assigned to you.

How will I know I am not losing money?

We will calculate a Mark to Market (M to M) return on your portfolio on a daily basis and monitor your returns.

What is the opportunity cost of trading?

If you carry out a non-leverage trading portfolio, then the only opportunity cost would be if interest rates increase above your purchase yields for a prolonged period (M to M losses). However, leverage portfolio carries the risk of negative funding gains along with possible erosion of capital.

Corporate Debt Trading

As a Licensed Stock Dealer in debt under section 20 of the Securities and Exchange Commission of Sri Lanka, we are able to trade in Corporate Debt securities via a uniform trading platform (ATS).

FAQ

Can a client buy or sell corporate debt through Wealth Trust?

Yes. Wealth Trust can facilitate corporate debt investments. In addition, as we are market makers, we would be able to quote a two-way price (buy & sell) at any given time.

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