Sri Lanka to bring credit regulation law for micro loan sharks

ECONOMYNEXT – Sri Lanka will bring a credit regulation law to protect consumers from micro loans given by loan sharks, Finance Minister Mangala Samaraweera said.

Poor people and widows have been given loans at exorbitant rates and they are getting deeper into poverty from these loan sharks," he told parliament.

Samaraweera said a relief scheme had been brought especially for widows who live in great difficulty.

The credit regulation law will be brought to the parliament soon, he said.

"We have information that black money is being used by some of these loan sharks," Samaraweera said.

"Persons close to the last administration are behind some of these loan sharks," he claimed, without giving additional information.

Critics say some established firms including a stock exchange listed non-bank lender, has engaged in aggressive lending, actively pushing loans to people who do not ask for them.  (Colombo/Apr05/2019-SB)

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