CB Officials Negate Govt Decision to Increase Upper Limit to Rs1.5 m for 15% Interest to Senior Citizens

Good governance Government has introduced various facilities to assist senior citizens after 2015 as the ageing population is on the increase in the island.

The Government, under its 100- day programme, in the Budget – 2015 for the first time introduced a 15% special interest scheme for senior citizens’ fixed deposits up to one million rupees maintained by senior citizens over the age of 60 years. 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. The number of fixed deposits maintained by senior citizens is reported to have risen today to 500,000 Recent Finance Ministry press release stated that, the upper limit to pay 15% special interest on fixed deposits maintained by senior citizens in the licensed commercial banks and the licensed Specialised Banks has been increased up to Rs.1.5 million from the current limit of Rs.1 million with effect from March 2017.

On the instruction of Finance Minister 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.

Unfortunately follow up action appears to have not been taken by the Central Bank to issue the amended circular to date. Senior Citizens contacting banks are being told instruction or amended circular has not yet been issued to them in this connection by the Central Bank. Decision taken by the Government benefiting the public is negated by the officials of the Central Bank, observers say.

“Procrastination is the thief of time”- Proverb.