LNP – 2% additional interest rate for SDAs

Additional interest up to 2 percent per annum will be extended for two years for Special Deposit Accounts (SDAs), the Central Bank said today.

“Considering the potential of Special Deposit Accounts (SDAs) to attract a substantial amount of foreign exchange into the country and the resultant positive impact on the foreign currency reserve position of the country and the overall economy, Minister of Finance with the recommendation of the Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to grant permission to rollover SDAs up to an accumulated period of 24 months from the initial date of placing such deposits. SDAs so rolled over will be eligible for additional interest up to 2% per annum offered by the Government,” a Central Bank statement said.

The government introduced the SDAs on April 8, last year, to seek assistance for the national effort to overcome the effects of COVID-19 pandemic in the country.

As at 02 July 2021, total deposits received into SDAs amounted to approximately US $ 458 million.

The regulations made by the Minister of Finance in this regard have been published in the Government Gazette (Extraordinary) Notifications No. 2234/19 dated 30 June 2021.

Further, the Central Bank said it has issued necessary Directions to the authorized dealers (licensed commercial banks and National Savings Bank) to implement the government’s decision.