The payment subject to a maximum of Rs. 120,000 per annum per person and to disburse the payment of bonus interest on a monthly basis, under the proposed scheme, through the account held by DST in the Central Bank of Sri Lanka on the basis of information submitted by licensed banks to the Director, Bank Supervision Department of the Central Bank of Sri Lanka.

With the sharp reduction in interest, the worst affected senior citizens are those who have small deposits. It’s therefore proposed that the payment of bonus interest will be subject to an upper limit of Rs.120,000 per senior citizen per annum.

The overall exposure to Government has been computed assuming the current market interest rates structure, where interest rates paid on savings deposits by banks are on average 5% and on fixed deposit rates are around 11%.