Ceylon Asset Management has announced launch of Ceylon Dollar Bond Fund in a move to attract foreign investments into Sri Lanka dollar bonds, which is considered to be a major step to internationalize the investment industry in Sri Lanka, which has thus far been restricted to rupee investments, the Securities & Exchange Commission (SEC) licensed the country s first ever dollar denominated unit trust following the approval of Central Bank and Ministry of Finance.
Now, foreign investors and BOI firms will be able to invest in high yielding Sri Lankan dollar bonds, through the Ceylon Dollar Bond Fund innovated by Ceylon Asset Management (CAM), structured exclusively in US dollar units to avoid exposure to currency risk.
Launched on 30 July, the new Ceylon Dollar Bond Fund, invests exclusively in dollar denominated Sri Lankan sovereign bonds, bank and corporate issued dollar bonds. The fund is been managed by Ceylon Asset Management (CAM), and Deutsche Bank AG acts as the trustee and custodian.
Ceylon Dollar Bond Fund is for US Dollar investors seeking to achieve capital appreciation and income growth over a period of time and aims at foreign institutions along with BOI approved companies in Sri Lanka and foreign retail investors.
Mr. Rohan Senewiratne, Consultant, Capital Market Development at SEC said, The first ever dollar denominated investment product is a result of 10 key projects unveiled in 2012 under Capital Market Development Roadmap of SEC. 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.
Dulindra Fernando, Managing Director of Ceylon Asset Management said, It was an honour and privilege for Ceylon Asset Management to be awarded the licence. This is a milestone for the industry as well as for us, to launch Sri Lanka s first ever US Dollar denominated unit trust. We hope to attract foreign investors with target dollar returns in excess of 4% p.a.