Sri Lanka will need Rs 40 Bn to increase senior citizens’ interest rate to 15 pct

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ECONOMYNEXT — Sri Lanka will require 40 billion rupees a year to bring the interest rate offered to senior citizens for their savings and the government is closely studying the matter with the country’s fiscal situation in mind, an official said.

State Minister of Finance Ranjith Siyambalapitiya told parliament on Thursday April 25 that the Treasury will take a decision with “great care”.

Siyambalapitiya was responding to a question raised by opposition leader Sajith Premadasa.

“The 15 percent interest rate offered to senior citizens has now gone down to 8 or 7 percent or even lower in some places. Senior citizens in this country are calling for government intervention to raise the interest rate back to 15 percent,” said Premadasa.

The state minister of finance responded that the government would have to fund such an initiative.

“The government must definitely allocate money it. To make it 15 percent, we have to allocate at least 40 billion rupees a year. We now have to pay for previous years too,” he said.

“We are playing close attention to how to face this matter given the current fiscal situation and revenue streams. The Treasury will take a decision with great care. We have experienced the outcome of hurried, careless decision making. I can say for now that we’re paying close attention to this,” he added.

The Inland Revenue Department announced in October last year that it would refund advance income tax (AIT) deducted on interest income of senior citizens.

“In an effort to support the financial well-being of our elder community members, we are launching a programme that provides a refund of AIT deducted on interest income at 5 percent by banks or financial institutions,” a statement said at the time.

Senior citizens 60 years or older with an annual income (from April 1 to March 31 the following year) that does not exceed 1,200,000 rupees who have had AIT deducted on their interest income were eligible to apply for this refund. (Colombo/Apr25/2024)

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[[{“value”:” ECONOMYNEXT — Sri Lanka will require 40 billion rupees a year to bring the interest rate offered to senior citizens for their savings and…

[[{“value”:” ECONOMYNEXT — Sri Lanka will require 40 billion rupees a year to bring the interest rate offered to senior citizens for their savings and…