Finance Minister reassures senior citizens on special interest scheme

Wednesday, 11 March 2015 00:38 - - {{hitsCtrl.values.hits}}

By Charumini de Silva Finance Minister Ravi Karunanayake yesterday reassured senior citizens that the special high 15% interest rate scheme for their qualifying fixed deposits would be strictly implemented by all licensed commercial banks. He said that there were several reports alleging that the 15% special interest rate schemes for senior citizens was not being followed by the banks despite guidelines being issued by the Central Bank.

This assurance was given at a special media briefing held along with the heads of the Bank of Ceylon and People’s Bank and Central Bank officials. While delivering the Interim Budget, Karunanayake announced that senior citizens would receive a higher interest rate of 15% per annum for their Fixed Deposits, up to a maximum level of Rs. 1 million in commercial banks. Offering a regulator’s point of view, the Central Bank’s Bank Supervision Director Yvette Fernando said: “A senior citizen who has reached 60 years after 31 January could also open a new account and obtain the same interest rate. It would be only applicable for a maximum FD level of Rs. 1 million.” The Finance Minister said that the objective of the scheme was to provide relief to senior citizens most in need of it hence the FD limit was fixed at Rs. 1 million. He said that the Government was incurring around Rs. 10-12 billion for this scheme. Bank of Ceylon General Manager and Chief Executive Officer D. M. Gunasekara said the 15% special interest scheme for senior citizens had already been implemented by the bank. Noting that the intention of this was to pass on the benefit of high interest rates to small-time depositors, Gunesekara went on to state: “To ensure that there won’t be any duplicate accounts we will require the national identity card number and a statement from the person opening the account.” He also explained that it was difficult to impose a 15% interest rate for Joint Accounts as well. People’s Bank General Manager and Chief Executive Officer N. Vasantha Kumar, verifying the position of existing customers who possess Rs. 1 million in deposits, said that they would have to transfer it to new accounts to obtain the 15% interest rate.

Ravi K says only shady projects stopped, other development work continuing

Finance Minister Ravi Karunanayake said yesterday that his ministry had not reduced or stopped any of the projects that had followed proper procedure. He said that there were many projects, such as the Defence Academy and other road development projects, which were implemented by the previous regime at a high cost and in altered forms. He went on to say that the Government had discontinued a few projects which had not followed due process and had been found to house financial irregularities. “As a Government which follows good governance perspectives, we will definitely carry out the best projects and maximise them for the people’s benefit. We must do what is available and affordable. Always remember that this is the taxpayers’ money that we are recycling,” Karunanayake told journalists yesterday. When asked whether the Government was renegotiating with China, Minister Karunanayake explained that they were negotiating what was best for Sri Lanka. “If we are overpaying we will certainly reduce it, if there is corruption we will stop it and if there is foul play we will eradicate that. Not only for China, but for Iran or any other country the principle will be the same,” Karunanayake responded. However, the projects that were implemented after 8 January would be given the full support of the Government as there was no room for corruption. “Everything else is happening in this economy except corruption.” The Finance Minister said that the Government had channelled most of the funds which were previously allocated for the corrupt projects of the previous government back into the economy. “No matter the size of the obstacle, we will stop corruption and corrupt projects. We will implement new projects and allocate any amount of funds for them,” he stressed. Karunanayake said that the Government was bound to resolve and respond to any of the issues related to new projects and would ensure good governance within the economy.