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
Sri Lanka Army begins post-flood recovery, clears obstructed waterways
-- [5 hours ago]
CSE halts trading of Blue Diamonds over possible misappropriation of Rights Issue funds
-- [5 hours ago]
Speaker wants unruly members of parliament to apologize if want to avoid disciplinary actions
-- [6 hours ago]
Sri Lanka tri-forces shun Eastern Province CM after outburst at a Navy officer
-- [7 hours ago]
Sri Lankan President arrives in Nagoya to attend G7 summit
-- [7 hours ago]
Sri Lanka's John Keels Holdings PBT for 2016 Rs. 19.2 billion, Recurring Profits up by 10 percent
Japan grants Rs. 318 million to Sri Lanka for human resources development
CID gets court order to probe financial records of three former security officers of former Sri Lankan President
Two Frontline Socialist Party members arrested for protesting over imprisoning party leader
Sri Lankan government sets up a new Office of Missing Persons

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.