Sri Lanka senior citizens’ deposits up to Rs1.5Mn to get higher interest

Elderly pensions ageing senior

Feb 15, 2017 (LBO) – Sri Lanka’s Finance Ministry said that it will increase the upper limit up to 1.5 million rupees for 15 percent special interest paid on fixed deposits maintained by senior citizens.

Director General of Department of Development Finance said the treasury will pay 18,000 million rupees to cover the difference during the year.

Licensed commercial banks and licensed specialized banks have been advised to increased the upper limit of fixed deposits maintained by senior citizens up to 1.5 million from the current limit of 1 million rupees with effect from March 01, the ministry said in a statement.

The Central Bank of Sri Lanka has been requested to notify all banks amending the previous circular in this regard.

The Government introduced a 15 percent special interest scheme for senior citizens’ fixed deposits up to one million rupees maintained by senior citizens over the age of 60 years in 2015.

Accordingly, the Government pays the difference between the 15 percent and the market standard interest rate offered by commercial banks.

Treasury incurred 13,000 million rupees 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.