Falling interest rates, dilemma of senior citizens
View(s):This refers to the letter from the Kohuwela senior citizen appearing in last week’s BT on the above subject requesting Mr. President to do something.
The banking sector continues to make record profits, this time Rs. 74.6 billion for 2013, while senior citizens continue to complain of falling interest rates.
Nothing seems to be happening to ease their plight!
Sri Lanka’s banking industry enjoys about 5 per cent spread, on which Central Bank of Sri Lanka and Government of Sri Lanka have been concerned over and they perhaps directly and/or indirectly advised banks to minimise/narrow the margins/spread so that depositors could benefit by way of increased interest rate.
Banks are in a position to increase interest rates for senior citizens without affecting (too much) profitability.
If the average lending rate of banks is estimated at 13 per cent per annum they can, on the above basis, offer an interest that is much higher than what is offered today for senior citizens without awaiting a directive from Mr. President in response to our very senior citizen from Kohuwala.
We pray and hope the banks will consider this plea instead of waiting for Mr. President to step in and provide justice to senior citizens .
K.U. Pushpakumara
Pitakotte