ECONOMYNEXT – Sri Lanka will pay its citizens over 60 years an additional 3 percent interest on their fixed deposits of up to a million rupees, its Ministry of Finance said.
Fixed deposits under this scheme can be opened from July 1, to December 31, and must have a 12-month tenure.
“Senior citizens will be entitled to receive the higher of the published fixed deposit rate of the bank or the Average Weighted Fixed Deposit Rate (AWFDR) plus 3% per annum,” the ministry said in a statement.
“Interest under this scheme must be withdrawn monthly.”
The government has allocated 15 billion rupees in its Budget 2025 to provide the subsidy.
“The decision to provide relief was made in response to several critical factors, including the high cost of living, reduced market interest rates, and the increasing financial challenges faced by senior citizens, particularly in managing essential expenses like healthcare costs.”
The deposit amount is capped at 1 million rupees per depositor, regardless of the number of participating banks.
The full statement is reproduced below:
Implementation of the Special Interest Scheme for Senior Citizens – 2025
The Ministry of Finance is pleased to announce the launch of the Special Interest Scheme for Senior Citizens – 2025, effective from July 1, 2025, as approved by the Cabinet of Ministers under the Budget 2025 proposals. This scheme aims to provide additional financial support to senior citizens in Sri Lanka by offering enhanced returns on their fixed deposit savings.
The decision to provide relief was made in response to several critical factors, including the high cost of living, reduced market interest rates, and the increasing financial challenges faced by senior citizens, particularly in managing essential expenses like healthcare costs. Recognizing the need to support this vulnerable group, the Government has prioritized the facilitation through this scheme.
The Special Interest Scheme for Senior Citizens – 2025 is open to resident Sri Lankan citizens aged 60 years or above. Fixed deposits under this scheme can be opened during the period from July 1, 2025 to December 31, 2025, and all such deposits must have a 12-month fixed deposit tenure. The total value of deposits under the scheme shall not exceed Rs. 1 million per depositor, regardless of the number of participating banks. Senior citizens will be entitled to receive the higher of the published fixed deposit rate of the bank or the Average Weighted Fixed Deposit Rate (AWFDR) plus 3% per annum. Interest under this scheme must be withdrawn monthly.
The scheme will be implemented through the 17 licensed commercial banks; five (05) government banks and twelve (12) private banks that have confirmed participation. As part of the process, customers are required to provide a declaration confirming that the funds deposited are their own, their monthly income is less than Rs. 150,000, consenting to the sharing of relevant information with the Ministry of Finance, Planning and Economic Development for verification purposes, agreeing that any false information provided will result in disqualification from receiving the interest subsidy.
The Government has allocated Rs. 15 billion under Budget 2025 to provide the interest subsidy to participating banks in order to ensures senior citizens receive the additional interest benefit without delay.
Senior citizens who wish to benefit from this scheme are invited to visit their nearest branch of the participating banks from July 1, 2025, with their National Identity Card (NIC) and other required documents, including the TIN issued by the IRD, to open a fixed deposit under this scheme.
The Ministry of Finance reiterates its commitment to safeguarding the welfare of senior citizens and ensuring that this nationally important program is implemented efficiently and transparently. (Colombo/Jul1/2025)
