Special interest rate for senior citizens already in effect

The Government reconfirmed in Parliament that the special interest for senior citizens proposed in Budget 2017 was already available through registered and approved financial institutions throughout the country and no false hope had been given.

State Minister of Finance Eran Wickramaratne told Parliament yesterday that even though there were technical issues which prevented the special interest for senior citizens in 2016, the Government was able to establish it the following year.

“As per the 2016 Budget proposal, the 15% special interest given to senior citizens over 60 years for deposits up to Rs. 1 million was extended to all senior citizens over 55 years for deposits up to Rs. 1.5 million made by registered financial institutions. The Ministry of Finance issued the necessary instructions to the Central Bank on 29 February 2016,” he explained. “However, the CBSL showed the difficulty in executing the new proposal but has agreed to continue the existing scheme for senior citizens from a letter dated 7 April 2016. So the special interest given to senior citizens continued throughout 2016 and the benefits were widened by Budget 2017 where deposits up to Rs. 1.5 million of senior citizens 55 years and above were given a special rate of 15%. CBSL issued the necessary circulars with effect from 1 March 2017,” added the Minister, explaining the practical issues which prevented any proposal from being executed overnight. AH