Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka securities regulator licenses the country's first ever dollar fund
Wed, Jul 30, 2014, 10:47 pm SL Time, ColomboPage News Desk, Sri Lanka.

July 30, Colombo: Securities & Exchange Commission (SEC) of Sri Lanka today licensed the country's first ever dollar denominated unit trust today (30 July) with the approval of the Central Bank of Sri Lanka and the Ministry of Finance.

The new open-ended Fund that offers US Dollar returns, invests exclusively in dollar denominated Sri Lankan sovereign bonds, bank and corporate issued dollar bonds.

The Fund is managed by Ceylon Asset Management (CAM), with Deutsche Bank AG as the trustee and custodian.

The fund risk is currently limited to sovereign risk and bank guaranteed risk whilst avoiding exposure to Sri Lankan rupee currency risk.

The fund is dollar denominated while capital and income can be repatriated freely in foreign currency to the investors' bank account by the Trustee and Custodian Bank.

The minimum investment for the fund is US$ 1,000.

The global ratings agency, Fitch Ratings yesterday assigned the new Ceylon Dollar Bond Fund a 'BB-' Fund Credit Rating and 'V-5' Fund Volatility Rating.

Fitch considers CAM, which has over 14 years of experience in fund management, suitably qualified, competent and capable of managing the fund.

The fund expects to attract Sri Lankan expatriates and other US Dollar investors. Foreign investors and BOI companies can now invest in high yielding Sri Lankan dollar bonds via the fund.

"Dollar bond funds will assist enhance current investor base of the local unit trust industry and also enable benefits of dollar investment scale which was previously limited to SLR (Sri Lankan Rupees)," said Rohan Senewiratne, Consultant, Capital Market Development at SEC.

Dulindra Fernando, Managing Director of Ceylon Asset Management said the management hopes to attract foreign investors with a target return of over 4 percent a year.

ColomboPage - Recent 10 Stories
Consumer Affairs Authority raids errant traders violating MRP for rice
-- [3 hours ago]
Sri Lankan President reiterates stance of no foreign judges in war crime probes
-- [4 hours ago]
Sri Lanka PM seeks international assistance to create a stable economy
-- [4 hours ago]
Top Indian politician arrested for gold smuggling from Sri Lanka sacked from post
-- [5 hours ago]
IMF Managing Director Christine Lagarde to visit Sri Lanka
-- [6 hours ago]
Finance Ministry says Central Bank in the past has violated ordinance in issuance of bonds
-- [7 hours ago]
We want a clean alliance free of racism, corruption - UPFA General Secretary
Former President Mahinda Rajapaksa to file lawsuit against Central Bank and Finance Ministry
Sri Lanka to take urgent measures to fill the shortage of Anesthetists
President lays foundation stone for new court complex in Polonnaruwa

Copyright © 2000, 2014 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.