Tuesday, April 28, 2009

Demand for Govt Securities on the increase

The demand for Government Securities is increasing among the public due to the low bank savings interest rates and the high credibility factor, said Executive Director Wealth Trust, Mangala Boyagoda.

“The reason for this trend is that Government Securities have the lowest risks and the highest return with zero default from the Government has created this demand,” Boyagoda told Daily News Business.

He said the fall of Sakvithi Investments and Golden Key Credit Card companies in the recent past, have created this latest trend on investing in savings accounts in Banks. Therefore, the demand for Treasury Bills and Treasury Bonds is slowly but steadily increasing among the public, he said.

These investments have high security, liquidity and return on investment factors for investors on Government Securities and the Banks have to play a pivotal role to promote these instruments in the country, he said.

Boyagoda said that investing in Treasury Bills/Bonds are far better than investing in bank savings accounts because the high interest rates and lowest risks have attracted the public.

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