15% interest on senior citizen’s FDs Treasury owes Rs.25 billion to Banks

By Dayaseeli Liyanage  
According to the bank sources the General Treasury has to recoup an amount of Rs.25 billion to the banks for paying interest at the rate of 15% on fixed deposit of senior citizens under the government programme of concession granted for them. 

MP Bandula Gunawardena said this special interest payment was introduced by the banks on the undertaking of the government to reimburse the loss incurring to the banks owing to paying interest at 15% over their normal rate of interest on fixed deposits. However, the government has not yet settled the amount due to banks.  

Accordingly, banks are experiencing financial difficulties.  

Besides, there are bills amounting to Rs. 90 billion in arrears to be paid by the General Treasury.