APRENDIZAJE POR PAREJAS

PARTICIPATING INSTITUTION :

AUCTION DATE :

AUCTION NO. :

BID ACT. S.DATE/ ISIN ACPT/PURC. YIELD SEC.FACE RE-PUREC. MAT TAX STATUS

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Ref. No.: 06/04/01/2009 Department of Exchange Control

January 07, 2009

Directions to Authorized Dealers

Dear Sirs,

INVESTMENT IN RUPEE DENOMINATED TREASURY BONDS AND TREASURY BILLS BY SRI LANKAN DIASPORA AND MIGRANT WORKFORCE

Authorized Dealers are hereby informed that permission has been granted to Sri Lankans living abroad including migrant workers/businessmen; Sri Lankan professionals living in Sri Lanka and abroad who earn foreign exchange; Sri Lankan citizens with dual citizenship irrespective of their country of residence and banks acting in fiduciary capacity on behalf of the above categories, to purchase, hold and sell Rupee denominated Treasury bonds (T-bonds) and Treasury bills (T- bills) with any maturity period.

The total investment in T- bonds and T- bills should not exceed 10% of the total value of T- bonds/T- bills outstanding at any given point of time. The above categories of investors are also permitted to enter into Repo/Reverse Repo transactions using T-bonds/T-bills purchased under this scheme as collateral. However, they are not permitted to utilize funds available in NRFC or RFC accounts or any other foreign currency accounts in Sri Lanka to purchase T- bonds/T-bills under this scheme.

1. Method of Payment

The above categories of investors shall make payments for purchase of T- bonds/T- bills by inward remittances through banking system and channelled through a special rupee account named “Treasury bonds/bills Investment

External Rupee Account-Deshabhimani (TIERA– D)” opened in the name of the investor. These accounts may

be held by eligible individual investors or jointly by two or more eligible investors.

2. Permitted Credits to TIERA-D

(a) Inward remittances received through banking system;

(b) Sale proceeds realized out of sale or maturity proceeds of T-bonds/ T-bills and any income realized by way of capital gain thereof;

(c) Interest received on T- bonds.

3. Permitted Debits to TIERA-D

(a) Payments for investment in T- bonds/T-bills;

(b) Payments for Lead Managers appointed by the Central Bank of Sri Lanka for this purpose and bank charges; (c) Transfers to any other account maintained in foreign currency or Sri Lankan rupees by the account holder; (d) Payments of local expenses of the account holder;

(e) Outward remittances of sale proceeds, maturity proceeds and interest of T- bonds/T-bills or any income realized by way of capital gain thereof.

4. Reporting Requirement

Authorized Dealers are required to furnish the details of TIERA - D to this Department on daily basis via the existing on-line system under the code no. 3.

Yours faithfully, E A Hettiarachchi Controller of Exchange

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Ref. No.: 06/04/02/2009 Department of Exchange Control

January 27, 2009

Directions to Authorized Dealers

Dear Sirs,

PAYMENT OF A BONUS INTEREST IN RUPEES ON THE INTEREST ON RESIDENT FOREIGN CURRENCY (RFC) ACCOUNTS AND NON RESIDENT FOREIGN CURRENCY (NRFC) ACCOUNTS

Authorized Dealers are hereby informed that in order to promote inward remittances, the Government of Sri Lanka will pay a bonus interest in Sri Lanka rupees on the interest paid by Authorized Dealers on RFC and NRFC accounts, with effect from February 01, 2009 subject to the following conditions:

1. The calculation of bonus interest shall be based on the foreign currency interest that accrues on deposits from 01/ 02/2009 onwards.

2. The bonus interest shall be equal to 20 per cent of the foreign currency interest that accrues after 01/02/2009 and paid by the Authorized Dealers to their customers in US Dollars or other designated foreign currencies on RFC and NRFC Accounts. Such bonus interest shall be paid in Sri Lanka rupees.

3. Authorized Dealers shall use the monthly average exchange rate of the previous month as made available on the Central Bank web site (www.cbsl.gov.lk) for the calculation of bonus interest.

4. The bonus interest calculated as above, shall be payable to the customer on the same day on which the foreign currency interest is paid.

5. The bonus interest, calculated in Sri Lanka rupees, shall be credited to a rupee account opened in the name of the account holder or to any other account nominated by the account holder.

6. The Bonus interest paid in Sri Lanka rupees will be exempt from income tax.

7. Authorized Dealers shall not reduce the prevailing interest rate offered by them to RFC and NRFC account holders, as a consequence of implementing this scheme.

8. The bonus interest paid on RFC and NRFC accounts for each month shall be claimed by the Authorized Dealer by submitting details of the bonus interest as per the attached format. Authorized Dealers shall send such details as a consolidated statement of all branches to the Chief Accountant of the Central Bank of Sri Lanka (CBSL) with a copy to the Controller of Exchange on or before the 15th _{day of the following month. Authorized Dealers are also} required to submit an account number to the Chief Accountant of CBSL, to which such reimbursement would be made in Sri Lanka rupees by the CBSL.

9. Authorized Dealers shall immediately inform all the RFC and NRFC account holders the operation of this scheme and obtain from them the particulars of the rupee accounts to which the bonus interest should be credited. 10. Details with regard to payment of bonus interest shall be made available for inspection by the CBSL, at any time.

Yours faithfully, E A Hettiarachchi Controller of Exchange

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