Colombo · Markets · MoneyIf you are wondering how to buy Treasury bills in Sri Lanka, the good news is that it is straightforward, and Treasury bills are considered one of the safest rupee investments available. This guide explains what they are, exactly where and how to buy them, and what to watch for.
The short version: you buy Treasury bills through a licensed commercial bank or a primary dealer appointed by the Central Bank. You choose a maturity of 3, 6, or 12 months, hand over your funds, and receive the full face value at maturity. The difference between what you pay and what you get back is your interest.
What is a Treasury bill?
A Treasury bill (or T-bill) is a short-term loan to the Government of Sri Lanka. Because the government stands behind it, it is treated as a near zero-risk investment. Two key features:
- Short maturities: 3 months (91 days), 6 months (182 days), or 12 months (364 days).
- Sold at a discount: you pay less than the face value up front, and receive the full face value at maturity. That gap is your return.
If you want the bigger picture first, see our explainer on Treasury bonds vs Treasury bills.
Where to buy Treasury bills in Sri Lanka
You cannot buy T-bills directly from the Central Bank as an ordinary investor. Instead, you go through one of two channels:
Where to buy
- A licensed commercial bank (most major banks offer Treasury bills to their customers).
- A primary dealer appointed by the Central Bank of Sri Lanka, several of which offer online platforms.
Both are regulated channels. Many banks and dealers now let you invest online or through their app, without visiting a branch.
How to buy, step by step
The steps
- Choose a bank or primary dealer you already trust or bank with.
- Complete the application (in branch, online, or through their platform), with your NIC and bank details.
- Pick your maturity: 3, 6, or 12 months, based on when you will need the money.
- Transfer your funds for the investment amount.
- Receive your confirmation, and the face value is paid to you at maturity.
How much do you need?
Minimum investment amounts vary by provider and by how you pay. Some dealers set higher minimums for bank transfers and lower ones for direct-debit methods, so it is worth asking a few before you choose. Always confirm the current minimum and the rate on offer at the time you invest.
A few things to know
- Rates come from weekly auctions. T-bill yields are set at regular government auctions, so the rate you are offered reflects current market conditions.
- You can often sell early. If your plans change, T-bills can usually be sold before maturity on the secondary market through a primary dealer, though the price then depends on where interest rates have moved.
- Interest is taxed. Interest income in Sri Lanka is generally subject to withholding tax, so your in-hand return is slightly lower than the headline rate. See our guide on tax on investments in Sri Lanka.
A Treasury bill is simply a short, safe place to park money that pays more than a savings account, backed by the government itself.
Is a Treasury bill right for you?
T-bills suit money you want to keep very safe and will likely need within a year, and they often compare well with fixed deposits on both safety and return. For a side-by-side comparison, read fixed deposit vs Treasury bills.