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Sri Lanka to regulate moneylenders after scam complaints

ECONOMYNEXT- The central bank and the Finance Ministry are drafting a law to regulate moneylenders and protect the public from predatory lending and scams, a statement said.

The central bank said advertisements pand publicity on moneylenders are being made on digital, electronic and print media, on which complaints have been received that some are scams.

Other complaints have been made that moneylenders harrass the public, violate confidential customer information and charge high interest rates.

“As per the existing legal framework, moneylenders do not come under a licensing and regulatory regime, unless they accept deposits,” the central bank said.

“Therefore, CBSL with the Ministry of Finance has taken action to draft a law for licensing, regulation and supervision of moneylenders and protection of customers.”

“The said law is currently in the drafting process and is expected to be
enacted in the near future.”

The central bank warned the public to avoid becoming victims of scams operating in the guise of moneylenders and to conduct due diligence before taking loans.

The central bank advised to avoid; providing personal information to unknown firms, signing blank sheets of paper, signing when terms and conditions are unclear or allow a third party to fill forms. (Colombo/Dec06/2019)

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