More Rates
Subscribe to Central Bank of Sri Lanka RSS

News

Public Awareness on Moneylending Activities

The Central Bank of Sri Lanka (CBSL) has observed that advertisements and other forms of communications are made through various channels,including print, electronic and digital media, offering loans. Complaints have been made on certain irregularities in this regard. There are some allegations regarding scams, while some are complaining on high interest rates, harassment to customers and misusing of confidential customer information by such moneylenders. A moneylender could be described as a person who carries on or advertises or announces himself or holds himself out in any way as a lender of money on interest, with or without security.

As per the existing legal framework, moneylenders do not come under a licensing and regulatory regime, unless they accept deposits. Therefore, CBSL with the Ministry of Finance has taken action to draft a law for licensing, regulation and supervision of moneylenders and protection of customers. The said law is currently in the drafting process and is expected to be enacted in the near future.

Mobilization of Funds from the Public by Issuing Various Instruments

It has been observed that certain individuals and entities mobilize funds from the public by issuing various instruments.  Promissory Notes, Commercial Papers and Debentures are few of them. It should be mentioned that certain categories of institutions raise funds by issuing the above mentioned instruments in order to meet their financial obligations. Though these products may be attractive in terms of return, individuals should ensure the appropriateness of such funds for their purposes.
 
The Central Bank of Sri Lanka (CBSL) has observed that some entities mobilize funds from the public without giving adequate information regarding the true nature of such instruments and without following the accepted procedure for such activities.  In this background, the CBSL wishes to inform the public to be vigilant on the legal status of various financial products, the standard procedure for issuing such instruments and the risks involved in investing in such products.

Cancellation of the License Issued to Lankaputhra Development Bank Limited

The Monetary Board of the Central Bank of Sri Lanka has granted approval in terms of section 76F read with section 9(9) of the Banking Act No. 30 of 1988 (as amended), to cancel the licence issued to the Lankaputhra Development Bank Limited in terms of the Banking Act, No. 30 of 1988 (as amended), with effect from 01st April 2019, with the completion of the merger of Lankaputhra Development Bank Limited with Pradeshiya Sanwardhana Bank, as proposed in the Government Budget 2016.

Accordingly, all assets and liabilities of Lankaputhra Development Bank Limited was acquired and merged with Pradeshiya Sanwardhana Bank with effect from 01st April 2019, and all banking business carried on by Lankaputhra Development Bank Limited shall be carried on by Pradeshiya Sanwardhana Bank.

Revoking of the Suspension of Business of Natwealth Securities Limited

The Monetary Board of the Central Bank of Sri Lanka, acting in terms of the Local Treasury Bills (Primary Dealers) Regulations No. 01 of 2009 and the Registered Stock and Securities (Primary Dealers) Regulations No. 01 of 2009, has decided to revoke the suspension of NatWealth Securities Limited from carrying on the business and activities of a Primary Dealer from 4.30 p.m. on 30th November 2019.

Pages