Products & Services

Government Securities (GSEC) are issued by the Public Debt Department of the Central Bank of Sri Lanka (CBSL) in order to fund the Government’s budget deficit. The key products are Treasury Bills and Treasury Bonds. Additionally other securities are also introduced to the market by the Central Bank through dedicated Primary Dealers.

Treasury Bills (T-Bills)

T- Bills are considered as short term debt instruments which are issued at the weekly auction for periods of 3/6/12 months. Key features are as follows;

  • No repayment risk – Capital plus interest guaranteed
  • Tradable instrument in the secondary market
  • Maturity date always falls on Fridays. If it’s a holiday funds are paid the previous working day
  • Can invest on a Discount or Cash basis

Treasury Bonds (T-Bonds)

Treasury Bonds are long term debt instruments issued by the CBSL and the duration ranges between 2 – 20 years.

  • No repayment risk – Capital plus interest guaranteed
  • Tradable instrument in the secondary market
  • Maturity date can fall on any date of the week. If it’s a holiday, funds are paid on the next working day
  • A periodic fixed interest amount called “Coupon Interest” is paid every six months
  • Investments can be placed at a discount, par or premium

Repurchase Agreements (Repo)

A Repo is a derivative of T-Bills/T-Bonds used by the Primary Dealers to borrow funds from investors. Repos can be invested even for a day or for a duration decided by the investor, up to a maximum of one year. Unlike in Treasury Bills, the maturity date can fall on any working day of the week.

Reverse Repurchase Agreement

Acuity Securities allows customers who have invested in Treasury Bills/Bonds/Repos to borrow against their securities, subject to conditions. The borrowing can be done either directly from Acuity Securities or through a HNB branch.

Bond Trading

Refers to the buying and selling of Treasury Bonds during times of fluctuating interest rates that allows for capital gains. This is derived by capitalizing on favorable interest rate/price fluctuations of the Treasury
Bond-selling at a higher price (lower yield) when compared to the purchased price. As an active investor you can earn capital gains by trading.


Coupon The half yearly interest paid by the Central Bank to the Treasury Bond investor. The coupon value is computed on the Maturity Value (Face value) of the Bond. At the time of investment, Acuity Securities will inform the client of the respective coupon dates & amounts.
Yield This is the effective return on investment the investor gets on the Treasury Bill or Bond.
Premium The purchase of a Bond at a price more than its face value. This arises when the coupon rate of Interest on the Bond exceeds the Yield.
Discount The purchase of a Bond at a price less than its face value. This is exactly the opposite of “Premium” explained above.
Clean Price It denotes the actual cost of the investment without the accrued interest component.
Full/Dirty price Clean Price plus the portion of coupon accrued paid to the seller. This is the ultimate purchase price of the bond.
SIA Securities Investment Account opened with a Sri Lankan commercial bank to route funds for T-Bill/ T-Bond investments.
CDS Central Depository System where securities (T-Bills/T-Bonds) are lodged electronically. Maintained at the Central Bank of Sri Lanka and managed by Lanka Secure.
RTGS Real Time Gross Settlement System – a method of transferring funds wholesale between banks and primary dealers within Sri Lanka, where credit is given on the same day.