Police have urged the public to exercise caution when obtaining loans via the Internet or mobile phones, following a surge in complaints about deceptive lending practices.
According to police, a growing number of institutions are advertising loans online and through mobile platforms, often presenting them in attractive terms. In some instances, unsolicited phone calls are used to promote instant loans that claim to require no collateral.
Reports received by the police reveal that many individuals have faced severe financial difficulties after taking such loans without properly understanding the high interest rates and repayment conditions.
Daily complaints indicate that borrowers are often charged extremely high interest rates, and some institutions are allegedly using unethical recovery methods — including repeated harassing phone calls and posting defamatory content on social media to publicly shame defaulters.
Police said a joint investigation conducted with the Non-Banking Financial Institutions Supervision Department of the Central Bank confirmed that many entities offering loans through digital platforms are not regulated by the Central Bank.
The Central Bank has since announced that measures are being taken to bring such institutions under proper regulatory oversight.
In light of these findings, police have urged the public to seek financial services only from institutions duly regulated by the Central Bank of Sri Lanka to avoid potential exploitation and financial harm.
For further information or to report suspicious financial activities, the public is advised to contact their nearest police station or visit the official website of the Central Bank of Sri Lanka.
