January 06, Colombo (LNW): A fresh piece of legislation aimed at curbing long-standing abuses in the microfinance sector has been tabled in Parliament, according to National People’s Power (NPP) MP Lakshman Nipuna Arachchi.
Addressing a gathering in Colombo, he said the proposed law seeks to bring relief to borrowers trapped in cycles of debt, particularly in rural communities where high-interest lending has taken a heavy social toll.
He noted that the human cost of the crisis has been devastating, with reports indicating that hundreds of women have taken their own lives after being crushed by unmanageable loan repayments.
In a separate development, authorities have uncovered a major investment scam that exploited the reputation of the Colombo Stock Exchange by illegally using its name and logo. Senior Vice President of the CSE, Niroshan Wijesundere, revealed that the fraud was operated through a deceptive mobile application that falsely claimed links to the exchange, luring members of the public with promises of easy returns.
Officials say the scheme has been running since November last year and has already caused significant financial losses. The Criminal Investigation Department has begun an in-depth probe into the matter. Wijesundere has meanwhile cautioned investors to be vigilant, advising them to confirm the legitimacy of any trading platform through official CSE sources before committing their money.