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Govt has not lost sight of senior citizen FD rates:State Minister

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State Minister of Finance Shehan Semasinghe

By Sanath Nanayakkare

Minister of State for Finance Shehan Semasinghe said on Monday that the government is aware of the low deposit interest rate senior citizens are earning on their savings as the policy rates are taking a downward trajectory amid declining inflation and expanded economic activity.

He, however, said that interest rate relief cannot be given to senior citizens right now because of the tight fiscal conditions of the government.

“Once the revenue of the government increases and the budget deficit is controlled within our targets, we should be able to look at an alternative option in this regard. But it is still too early to give a timeline for this,” he said.

The state minister made the following comment during a political chat show on Hiru TV responding to a query.

“In 2022, Sri Lanka underwent an economic contraction of almost 10% followed by six persistent quarters of contraction – all four quarters in 2022 and two quarters in 2023. We recorded growth of 1.6% and 4.6% in the third and fourth quarters of 2023 respectively. The benefit of these economic indicators is flowing down to the people. It would be better if people could accrue more benefit from this situation. Anyway, we are doing our best to ensure that happens. This endeavor will take more time. Let’s now look at the interest rate scenario. Just a few months ago, there was a lot of uproar about high lending rates because it went up to 25%- 30%. Taking out startup or business expansion loans were shunned by the people because of that and driving the economy through commercial activity had come to a halt. At that time, depositors received high yields. Now, with the economy reviving and with inflation expectations well-anchored, the interest rates are behaving in a corresponding manner. With the monetary policy decisions and expansion in economic activity, the interest rates are adjusting downwards and the government can’t interfere with it and artificially increase the deposit interest rates. Some politicians take up this issue and shout from the rooftop that senior citizens who depend on their savings can’t live on the current low deposit rates. They do that to gain political mileage. Those who were vociferous about high lending rates in the immediate past have done a complete roundabout and clamour against low yields received by senior citizens on their lifetime savings.”

“As a responsible government, we can’t implement what is said by the Opposition on election platforms and put the country at risk. We need to make sure how our senior citizens can be helped in a sustainable manner. For this, we need our macro economy to be in a robust manner. We are working on it on several fronts while the economy is in recovery mode. Once we can be sure that the State’s financial conditions are in right shape, we will consider an alternative option for this,” he said.

Semasinghe said that the ban imposed on the importation of vehicles for personal use will remain till the end of this year.

According to the minister there are no plans yet to reduce the PAYEE tax.

“If we implement non-pragmatic proposals preached by Opposition politicians from the election platforms, the country will get bogged down in another economic crisis soon,” he said.



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‘Sri Lanka is a Union Country’, says global labour leader

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Officials of ITF, ILO and NUSS at the launch ceremony

ITF pledges expanded partnership with transport sector workers at Colombo Welfare Hub launch

In a landmark moment for Sri Lanka’s transport sector, the International Transport Workers’ Federation (ITF) unveiled The Palace—a brand new welfare facility for seafarers—while declaring its commitment to partner with the nation’s entire transport workforce.

ITF General Secretary Stephen Cotton delivered a stirring message at the launch on March 20, hailing Sri Lanka as “a union country” with robust labour laws and a resilient worker-led culture; a rare endorsement from a global labour leader.

“I call Sri Lanka a union country because it’s a nation that takes pride in its labor laws and collective strength,” Cotton declared to a room of policymakers, shipowners, ship crews, ILO officials, women seafarers and maritime stakeholders.

“The ITF doesn’t just want to support seafarers—we’re here to partner with all transport workers, from railways to ports, to build a fairer future,” he said.

Located in central Colombo, The Palace—a collaboration between the ITF, its Seafarers Trust, and the National Union of Sri Lankan Seafarers (NUSS) —aims to transform the lives of maritime workers. The facility offers affordable lodging, family reunification spaces, counseling, and recreational resources for seafarers transitioning to and from grueling voyages.

Boa Athu, President of NUSS called it a “long-overdue sanctuary” for workers who sustain Sri Lanka’s economy through foreign remittances.

Cotton emphasized the timing of the launch amid global instability: “We’re in turbulent times—geopolitical shifts, climate crises, and economic uncertainty. But here, Sri Lanka’s unions have shown what solidarity can achieve. He noted NUSS’s growth from 7 to 30,000 members, calling it a “phenomenal” model for worker empowerment.

The ITF’s vision extends far beyond the docks. Cotton revealed he had met with railway workers the day prior, signaling broader ambitions.

Transport workers were the lifeblood of the global economy linking supply chains and keeping the world moving, and they were vital to successfully responding to the challenge of Covid-19. We mustn’t forget the risks that transport workers faced on the frontlines. Now, we must ensure they’re shielded from crises like climate change,” he said, framing the climate emergency as a “workers’ crisis” requiring urgent re-training for green energy transitions.

ITF General Secretary, Stephen Cotton unveils The Palace, in Colombo on March 20.

With partnerships spanning the UN Global Compact and International Maritime Organization, the ITF plans a Singapore forum to accelerate fossil fuel phase-outs.

“Seafarers here are already training for new energy technologies—but placing them in jobs remains a challenge,” Cotton admitted.

Referencing global political volatility—including U.S. leadership shifts—Cotton stressed the need for “predictable” worker alliances like the ITF. He praised Sri Lanka’s push to grow its maritime economy, including government plans to boost container capacity and recruit women into skilled and rewarding roles.

“The Palace isn’t just a building—it’s a symbol of what’s possible when unions, governments, and global partners unite,” Cotton said. “Sri Lanka’s workers are its economy. Safeguarding their wellbeing isn’t charity—it’s strategic,” he said.

As the ITF expands collaborations in Brazil, Mexico, and beyond, Sri Lanka’s transport sector stands at a crossroads. The Palace offers immediate relief for seafarers, but Cotton’s message signals a larger ambition: positioning the island as a beacon of worker solidarity in an unstable world.

For Sri Lanka’s 30,000-strong NUSS members—and thousands more in railways, ports, and tourism—the call is clear: the fight for fair conditions is now a global alliance.

By Sanath Nanayakkare

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Alipay+ joins as Gold Sponsor of LankaPay Technnovation Awards 2025

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LankaPay – Sri Lanka’s National Payment Network recently announced its partnership with Alipay+ as the Gold Sponsor of the LankaPay Technnovation Awards 2025. This marks Alipay+’s second consecutive year of collaboration at this landmark event, reinforcing Alipay+’s commitment to advancing digital payment solutions and financial innovation in Sri Lanka’s evolving financial sector.

LankaPay Technnovation Awards is Sri Lanka’s first and the only payment technology innovation awards; and the only financial sector awards competition in the country which is organized for the 7th time in 2025. The grand finale is scheduled to be held on 26th March 2025 from 6.00pm onwards at the Grand Ballroom, Shangri-La Colombo under the patronage of the Chief Guest – Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, and Deputy Minister of Digital Economy, Eng Eranga Weeraratne and Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy as Guests of Honour. The event will see an audience of over 500 movers and shakers of the country’s financial sectors including Chairmen and CEOs of FIs and FinTech companies, Government officials, policymakers and top-tier delegation of leading international payment networks.

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Sanasa Life Insurance sponsors 95th ‘Battle of the Maroons’

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Sanasa Life Insurance sponsored the 95th edition of the big match between Ananda College and Nalanda College. The highly anticipated three-day big match ended in a draw. Adverse weather conditions prevented a decisive outcome, but based on their performances, both teams were declared joint winners.

‘The Best Fielder’ award was also sponsored by Sansa Life Insurance. “We see brilliant cricketing talent being played on the field right before our very eyes. These youngsters are the future of cricket that takes the name of Sri Lanka proudly to the world someday. We are glad to have been a part of their journey forward”, said Sanasa Life Insurance CEO Mr. Nuwanpriya Gunawardane, commenting on the outstanding fielding performance by Chanul Athukorala of Nalanda College.

Commenting on the match, Gunawardane added: “Sanasa Life Insurance is honoured to support this legendary cricketing battle. We believe in encouraging the younger generation to overcome challenges and strive for greatness. This match embodies those values.”

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