CBSL and Finance Ministry to draft new law to regulate money lending

Colombo (News 1st): The Central Bank with the Ministry of Finance has taken action to draft a law for licensing, regulation and supervision of institutions that lend money to the public and protection of customers. The said law is currently in the drafting process and is expected to be enacted in the near future. Issuing a statement the Central Bank said, complaints have been made on certain irregularities on advertisements offering loans. As per the existing legal framework, these institutions do not come under a licensing and regulatory regime, unless they accept deposits. In view of these observations, the public is advised to exercise due diligence and care to avoid becoming victims of the scams operating in the guise of money lending businesses. Further, it is advised to rely on regulated entities when entering into financial transactions.