The Anti-Corruption Force (ACF) has called on the Government and the Central Bank of Sri Lanka (CBSL) to urgently crack down on online loan providers charging exorbitant interest rates and using aggressive tactics to recover debts.
At a media briefing on October 20, ACF Convenor Niroshan Padukka revealed that many of these entities operate without proper registration, with some reportedly run by foreign nationals, including Chinese, Ukrainian, and Russian individuals.
Padukka highlighted that under the Banking Act, No. 30 of 1988, such activities by foreigners—except for registered foreign banks—are illegal, yet the CBSL has failed to take meaningful action against these unregulated lenders.
These online platforms reportedly target over 1.5 million borrowers, offering loans ranging from Rs. 1,000 to Rs. 250,000.
Shockingly, a Rs. 1,000 loan can incur Rs. 1,200 in interest within just seven days, while a Rs. 5,000 loan can attract Rs. 3,800 in weekly interest alone.
According to the ACF, approximately 50 such institutions have been registered under the Companies Act, further complicating regulatory oversight.
Padukka raised serious concerns over the silence from both the CBSL and Government on this growing problem, urging immediate intervention to ban these predatory lenders and protect vulnerable Sri Lankan borrowers from spiralling debt traps.
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