CBSL Report: Financial Scams & Deposit Complaints Surge (2023–2025) 📈

An analysis of complaints by the Central Bank of Sri Lanka’s (CBSL) Financial Consumer Relations Department (FCRD) from 2023 to 2025 reveals a changing risk landscape driven by the expansion of digital banking and mobile payments. • Sector Breakdown: Licensed banks accounted for the vast majority of consumer grievances at 79% of total complaints, while licensed finance companies accounted for the remaining 21%. • Key Trends: • Financial Scams & Frauds: Rose sharply by approximately 80%, marking it as a critical operational threat. This includes phishing, social engineering, and unauthorized access where consumers were tricked into sharing sensitive data like OTPs. • Deposit-Related Issues: Surged by 59%, driven by high expectations for service reliability in digital transactions. Common issues include blocked accounts, slow transfers, and poor customer support. • Fees and Charges: Increased by roughly 40%, particularly regarding lending-related processing fees, early settlement costs, and deposit maintenance charges. • Lending Interest Rates: Declined significantly over the same period, reflecting the broader easing of borrowing costs across the financial sector post-economic crisis. • Strategic Implications: The data aligns with global risks highlighted in the OECD Consumer Finance Risk Monitor 2026. To preserve trust in the banking sector, financial institutions must strengthen disclosure practices, simplify pricing, and enhance real-time fraud tracking and inter-agency coordination.