Financial Times

Lankan expats offered car in bond issue
After listening to non-resident Sri Lankans asking about a saving policy that will help the country’s long-term rebuilding effort, including non-tsunami projects, the government will tomorrow open up a debt instrument – with a near duty free car thrown in – predominately available in dollars, sterling and the euro.

Treasury Secretary Dr P. B. Jayasundara told reporters on Friday that the initial value of the Sri Lankan Nation Building Bonds (SLNBB) would be set at $25 million, with hopes that popular interest will raise that figure to $250 million in the long run. To garner interest from small investors, road shows will initially visit Singapore, the Middle East, South Korea and Australia.
The minimum investments are 500 dollars, 500 euros and 250 pounds sterling, where the issue is open until August 7 and is tax free. Interest payments will be paid out semi-annually from the date of issue. As an incentive to those interested, a reduced tax car will be offered – size and type being dependent on the size of the investment. The issue has a five-year maturity.

Dr Jayasundara added that the money raised will help the government’s expenditure, in necessary land acquisitions and avoid any liquidity problems.
Repayments and interest are guaranteed by the government, where the Deutche Bank will act as the custodian, and the Bank of Ceylon as the lead manager. Further information can be found on the Central Bank’s website at www.centralbanklanka.org.

On a related subject, the ministry secretary was asked about the progress concerning the donor projects in the aftermath of the tsunami, where approximately millions of rupees are in private hands. He said that it was difficult to give exact progress reports presently as there were over 500 projects currently up and running, but added that the Central Bank was working hard to gather the relevant information. “There should be a statement concerning such matters in the next week or two,” he said. (RI)

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