Treasury guidelines to pass budgetary relief soon to elderly citizens and the poor
Sri Lanka’s Treasury has been directed to prepare necessary guidelines to grant 2015 interim budgetary concessions given to elderly citizens, low and middle income earners by next month, Finance Minister Ravi Karunanayake said.
The Treasury and Central Bank are working closely to clarify some of the issues that have arisen in the waiver of interest for gold pawned for less than Rs. 200,000, the 8 per cent interest above the lending rates for credit cards, the 50 per cent waver of bus fares for elderly citizens and also the much delayed Super Gain tax, he told the Business Times.
The re-imbursements for these concessions will be made by the Treasury under the budgetary support system and modalities will be worked out without exerting liquidity pressure on banks, a senior official of the Finance Ministry revealed.
Several rounds of talks between senior Treasury officials and the Central Bank were held recently and guidelines on these concessions have been finalised, he added.
However there were some practical problems and bottlenecks yet to be sorted out, he said, adding that Treasury officials have been directed to settle these issues with banks and relevant government institutions.
Around one third of gold pawned in banks were less than Rs.200,000 and the waiver in interest would exert severe impact on the banks, that have been greatly affected by the drop in gold prices last year.
Customers are complaining about the delay in granting this concession by banks, but the Treasury will have to cushion the impact enabling the banks pass this budgetary relief to masses, he pointed out.
Mr. Karunanayake told the Business Times that all these practical issues will be solved and the budgetary concessions will be passed on to the needy by next month.
The Ministry of Internal Transport will have to take necessary action to grant 50 per cent concession on bus fares to senior citizens when they travel in state Transport Board buses and necessary budgetary provisions have been made for this purpose, he revealed.