The Central Bank of Sri Lanka (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. A moneylender could be described as a person who carries on or advertises or announces himself or holds himself out in any way as a lender of money on interest, with or without security.
As per the existing legal framework, moneylenders do not come under a licensing and regulatory regime, unless they accept deposits. 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.
