Police Caution Public Over Predatory Digital Loan Schemes ⚠️

• Sri Lanka Police and the Central Bank (CB) have issued a joint warning regarding a surge in complaints over deceptive online and mobile loan schemes. • Lenders are promoting instant cash without collateral, but borrowers are subsequently facing financial distress due to undisclosed fees and excessive interest rates. • Predatory recovery methods include harassment, repeated calls, and public shaming/defamatory social media posts against those who fail to meet repayments. • A joint probe confirms that many of these digital lending entities are unlicenced and unregulated by the Central Bank. • Public is strongly urged to obtain credit only from institutions authorised and regulated by the Central Bank and to verify their legitimacy before borrowing. Oversight measures are currently being introduced.