CBSL to introduce laws to regulate moneylenders

The Central Bank of Sri Lanka (CBSL) with the Ministry of Finance has taken action to draft a law for licensing, regulation and supervision of money lenders and protection of customers.

“As per the existing legal framework, moneylenders do not come under a licensing and regulatory regime, unless they accept deposits,” CBSL said in a press statement today.

According to the CBSL, the said law is currently in the drafting process and is expected to be enacted in the near future.

“The CBSL has observed that advertisements and other forms of communications are made through various channels, including print, electronic and digital media, offering loans. Complaints have been made on certain irregularities in this regard.”

“There are some allegations regarding scams, while some are complaining on high interest rates, harassment to customers and misusing of confidential customer information by such moneylenders.”

“In view of these observations, the public is advised to exercise due diligence and care to avoid becoming victims of the scams operating in the guise of money lending businesses,”CBSL warned the public.

The CBSL added that the public should obtain full information before entering into an agreement for a financial transaction.

Further, it is advised to rely on regulated entities when entering in to financial transactions.