The Ceylon Dollar Bond Fund (CDBF) investing in Sri Lanka Development Bonds (SLDBs), Dollar Sovereign and Bank Bonds, is now eligible to accept investments from any local individual or company.
All Personal Foreign Currency Account (PFCA) holders (formerly NRFC, RFC, RNNFC, SFIDA etc.) or Business Foreign Currency Account (BFCA) holders (formerly FEEA, Exporter’s Foreign Currency Accounts etc.) can now invest in the Fund.
CDBF, the only dollar denominated unit trust in Sri Lanka is approved by the Central Bank.
The fund reported a net return of 6.95% in 2016 and 5.25% in 2017, while the annualised return as at 28 February was 4.34%.
Previously limited to Sri Lankans living or working overseas, BOI companies and foreign investors, the fund is now open to any investor from US$ 1,000 upwards.
Ceylon Asset Management Managing Director, Dulindra Fernando said: “CDBF has been able to secure attractive interest rates available on Sri Lankan dollar bonds, influenced by the news of US Federal Reserve raising interest rates and the recent civil unrest in Sri Lanka. Returns on the CDBF have been strong due to the Sri Lankan government engaging in raising dollar funds in both local and international markets”.
The Chairman of Ceylon Asset Management, Nilu Wijedasa, commended the CBSL and the SEC for paving the path for Sri Lankan investors to access competitive returns available through CDBF. Further, he noted with approval the replacement of the country’s previous Exchange Control Act, which was succeeded with the new Foreign Exchange Act, legislation which Wijedasa believes has advanced Sri Lanka’s foreign currency management systems to be on par with international standards.