COLOMBO, May 6: Sri Lanka on Tuesday allowed foreign investors to buy into treasury bills in a bid to deepen the government securities market, the central bank said.

Treasury bills carry maturities up to one year. The bank said the move would allow foreigners to buy more than $340 million worth of rupee-denominated treasury bills this year.

Since November 2006, Sri Lanka has allowed foreigners to buy up to 10 per cent of rupee-denominated treasury bonds, which carry maturities of one year or more.

Foreigners can now buy up to 10 per cent of the outstanding treasury bill issue through the primary market, the bank said, adding that the move will not affect the state’s overall borrowing limit announced in this year’s budget.—AFP