State-of-the-art sequential recommendation models heavily rely on transformer's attention mechanism. However, the quadratic computational and memory complexities of self attention have limited its scalability for modeling users' long range behaviour sequences. To address this problem, we propose ELASTIC, an Efficient Linear Attention for SequenTial Interest Compression, requiring only linear time complexity and decoupling model capacity from computational cost. Specifically, ELASTIC introduces a fixed length interest experts with linear dispatcher attention mechanism which compresses the long-term behaviour sequences to a significantly more compact representation which reduces up to 90% GPU memory usage with x2.7 inference speed up. The proposed linear dispatcher attention mechanism significantly reduces the quadratic complexity and makes the model feasible for adequately modeling extremely long sequences. Moreover, in order to retain the capacity for modeling various user interests, ELASTIC initializes a vast learnable interest memory bank and sparsely retrieves compressed user's interests from the memory with a negligible computational overhead. The proposed interest memory retrieval technique significantly expands the cardinality of available interest space while keeping the same computational cost, thereby striking a trade-off between recommendation accuracy and efficiency. To validate the effectiveness of our proposed ELASTIC, we conduct extensive experiments on various public datasets and compare it with several strong sequential recommenders. Experimental results demonstrate that ELASTIC consistently outperforms baselines by a significant margin and also highlight the computational efficiency of ELASTIC when modeling long sequences. We will make our implementation code publicly available.