Main Features of Repos & Reverser Repo

• Issued by the Central Bank on behalf of the Government of Sri Lanka.
• Essentially short term and usually overnight to a week. (Reverse Repo – When the customer sells a security to the dealer with the intent to buy it back. Overnight Repo – Bank borrowing for a period of 1 day, Term Repo – Bank borrowing for a period exceeding 1 day)
• Backed by a Guilt Edged collateral
• An interest-bearing loan
• Interest earnings are exempted from Withholding Tax
• It is free from Default Risk since the collateral is guaranteed by the Government.

Benefits of Investing in Repos & Reverser Repo

• Liquidity – Repos provide the ability to invest cash overnight, making them a critical component in the effort to manage liquidity.
• Yield Advantage – Repos generally provide additional yield as compared to traditional money market instruments.
• Flexibility – the principal amount of repos can be adjusted up or down as fund cash flows dictate.
• NSB offers an unmatched security for the deposits of our customers, being 100% guaranteed by the Government of Sri Lanka.