According to the Police, many individuals have fallen victim to these schemes after obtaining loans without paying proper attention to interest rates or repayment terms. Complaints received by the Police reveal that borrowers often face serious issues, including unexpectedly high interest charges and harassment during loan recovery.
Reports also indicate that some of these institutions engage in unethical practices such as making threatening calls and spreading defamatory content about borrowers on social media platforms to recover debts.
Following an inquiry made by the Police to the Central Bank of Sri Lanka’s Department of Supervision of Non-Bank Financial Institutions, it was revealed that many such online and mobile-based lenders operate without Central Bank regulation. The Central Bank has reportedly begun taking steps to regulate these entities.
The Police therefore urge the public to obtain financial services only from institutions regulated by the Central Bank of Sri Lanka to ensure their safety and avoid financial exploitation.
