• Anti-corruption org. claims Chinese/Ukrainians/Russians involved with such institutions, some registered as companies

The Anti-Corruption Force (ACF) organisation urged the Government and the Central Bank of Sri Lanka (CBSL) to take immediate action to curb groups that issue online loans at exorbitant interest rates and use oppressive methods to recover money from defaulting debtors.

Its Convenor Niroshan Padukka, addressing a media briefing held yesterday (20), noted that many of these organisations have not obtained proper registration and include foreigners.

Noting that the Banking Act, No. 30 of 1988 prohibits such acts by foreigners other than registered foreign banks, he raised concerns about the lack of action by the CBSL against loan-issuing foreigners. According to him, among them are Chinese, Ukrainian and Russian nationals.

“The number of people who have fallen prey to them is over 1.5 million. These groups issue loans ranging from Rs. 1,000 to Rs. 250,000 via online platforms. In the event an online loan of Rs. 1,000 is obtained, within seven days, Rs. 1,200 must be paid as interest in addition to the initial Rs. 1,000. A loan of Rs. 5,000 results in an interest of Rs. 3,800 a week in addition to the initial Rs. 5,000,” he said, claiming that around 50 such loan-issuing institutions have been registered under the Companies Act.

Questioning as to why the CBSL and the Government maintain silence about this issue, Padukka urged the Government and the CBSL to take action in order to ban these institutions.