Friday Oct 17, 2025
Friday Oct 17, 2025
Friday, 17 October 2025 00:00 - - {{hitsCtrl.values.hits}}
The Sri Lanka Police Headquarters yesterday warned the public to be cautious when taking loans through online or mobile platforms, following a surge in complaints about deceptive and exploitative lending practices.
Police said a growing number of institutions are promoting instant loans online or via mobile apps, often with attractive advertisements or unsolicited phone calls promising quick access to cash without collateral. However, many borrowers have since fallen into financial distress due to undisclosed fees, excessive interest rates, and predatory recovery methods.
Investigations revealed that some lenders resort to harassment and public shaming—such as repeated calls or defamatory posts on social media—against borrowers who fail to meet repayments.
A joint probe by the Police and the Central Bank’s Non-Banking Financial Institutions Supervision Department found that many of these entities are not licenced or regulated by the Central Bank. Officials said steps are being taken to bring such digital lenders under proper oversight.
The Police urged the public to obtain credit only from institutions authorised and regulated by the Central Bank and to verify their legitimacy before borrowing. Complaints or suspicious activities can be reported to local Police stations or through the Central Bank’s official website.
