Home / TOP STORY/ Rs. 18 b bonanza for senior citizens!

Rs. 18 b bonanza for senior citizens!


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 16 February 2017 00:42


  • Govt. enhances upper limit for 15% special interest to senior citizens’ deposits to Rs.1.5 m



The upper limit to pay 15% special interest on fixed deposits maintained by senior citizens in licensed commercial banks and licensed specialised banks has been increased up to Rs.1.5 million from the current limit of Rs.1 million with effect from 1 March.

On the instruction of Minister of Finance Ravi Karunanayake, Treasury Secretary Dr. R.H.S. Samaratunga has informed the Central Bank of Sri Lanka to notify all banks amending the previous circular in this regard.

Department of Development Finance Director General said that with the increase of the upper limit, the Treasury has to spend Rs.18 billion to pay the 15% interest during this year.

The Treasury incurred Rs.13 billion for this purpose in 2016. As a result of this offer to senior citizens, the number of fixed deposits by senior citizens rose to 450,000 in 2016 from 91,000 in 2015. This figure has risen today to 500,000 since Karunanayake announced the continuation of the senior citizens deposits scheme which guarantees an interest of 15% for deposits with the increase of the upper limit up to Rs. 1.5 million.

Finance Ministry said the present Government, under its 100-day program, in the Budget 2015 for the first time introduced a 15% special interest scheme for senior citizens’ fixed deposits up to Rs. 1 million maintained by senior citizens over the age of 60 years. Accordingly, the Government pays the difference between the 15% and the market standard interest rate offered by commercial banks. 

Meanwhile, Karunanayake said that this Government introduced various facilities to assist senior citizens after 2015 as the ageing population is on the increase in the island.

In addition to the 15% interest, which was introduced in the country for the first time in 2015, the benefit of the Agrahara Insurance Scheme available for the public servants was extended up to 70 years for the benefit of those who are retiring from the public sector. 

In Budget 2017 Karunanayake announced the extension of the insurance cover for the full lifetime of retiring public servants from this January.


Share This Article


COMMENTS

Today's Columnists

The SLFP’s crisis

Tuesday, 12 December 2017

The SLFP’s crisis is a crisis of ideological identity. It is also an existential crisis. The SLFP is divided into two tendencies, a Minority (‘Menshevik’) faction with 44 seats in Parliament, led by President Sirisena, not all of them elected,


Investments in listed securities and best practices to follow

Tuesday, 12 December 2017

Investment in financial instruments has never been easier than today. With the sphere of new technology, an investor is able to invest not only in his or her own jurisdiction but also in other countries’ financial markets. The capital market is an


Law, society, power and morality

Tuesday, 12 December 2017

On 28 November, I wrote a small op-ed which was received with mixed emotions, and hence I believe this follow-up will put the record straight. My sentiment throughout the article was that the state had the obligation to enact legislations which corre


Lloyd Yapa’s treatise on export competitiveness: A must reference book for SL economic policymakers

Monday, 11 December 2017

A pressing economic problem faced by the present Government, and any government that would come to power in the future, is the dwindling export earnings.


Columnists More