Sri Lanka Government approves special fixed deposit scheme for senior citizens

The government of Sri Lanka has officially approved the implementation of a special fixed deposit scheme for senior citizens, as outlined in the 2025 Budget.

The decision was announced by Cabinet Spokesman and Minister Nalinda Jayatissa during the weekly media briefing on Cabinet decisions.

The proposal, submitted by President Anura Kumara Dissanayake in his capacity as the Minister of Finance, Economic Development, and Plan Implementation, has received the Cabinet of Ministers’ approval for execution.

Key Features of the Scheme:

• Eligibility: Sri Lankan citizens aged 60 years or above.
• Deposit Period: Fixed deposits made between July 1, 2025, and December 31, 2025.
• Duration: 12 months (1 year) per deposit.
• Maximum Deposit Amount: Rs. 1 million per individual.
• Interest Rate Benefit:
  • A 3% additional annual interest will be provided on top of either:
    • The Average Weighted Fixed Deposit Rate (AWFDR), or
    • The officially declared fixed deposit interest rate,
      whichever yields the higher return for depositors.

Government Support:

To ensure the scheme’s success and provide enhanced financial returns to retirees, the government has allocated Rs. 30 billion for interest relief payments under this programme.

Minister Jayatissa emphasized that the initiative aims to strengthen financial security and provide better investment returns for senior citizens during their retirement years.