By Adolf
Sri Lankan credit card users are being taken for a ride. While banks and card companies boast about convenience, security, and global acceptance, the reality is starkly different: exorbitant fees, opaque charges, and outright exploitation. Overseas transactions are where the abuse is most glaring, and among the worst offenders is American Express (Amex), which consistently imposes punishing markups and foreign transaction fees far beyond what other cards charge.
Credit card holders pay hidden costs at every step. Foreign exchange conversion fees, service charges, and even stamp duties pile on top of already high interest rates. These fees are often poorly explained—or not disclosed at all—until the user sees the shockingly inflated statement. A simple purchase abroad can end up costing hundreds or even thousands of rupees more than anticipated. And yet, banks continue to profit while consumers bear the brunt.
Adding insult to injury, many local merchants continue to pass on their card processing costs to consumers through extra surcharges of 2.5%–3%, despite clear directives from the Central Bank of Sri Lanka (CBSL) prohibiting this practice. These surcharges violate merchant agreements and exploit customers who may not even realize they are being overcharged. CBSL has warned against this, yet enforcement remains weak, and violations persist unchecked.
CBSL has introduced regulations on financial consumer protection, emphasizing transparency and fair treatment. But statements alone do not protect consumers. Banks continue to impose hefty international fees, and card issuers like Amex, which dominate the high-end credit card segment, profit massively from overseas transactions while offering little real value in return. It is a system rigged against ordinary Sri Lankans.
What is required is decisive, forceful action. CBSL must cap foreign transaction fees, mandate complete transparency on all charges, and penalize banks and merchants who flout the rules. Consumers must be empowered to challenge exploitative practices without fear or bureaucratic delay. Anything less leaves the door open for continued abuse.
Credit cards are meant to be a tool for convenience, mobility, and access to global commerce. Instead, they have become a vehicle for banks and card companies to extract hidden revenue from unsuspecting customers. The time for gentle warnings and regulations on paper is over. CBSL must step up and protect Sri Lankan consumers from being exploited by powerful financial institutions, including the likes of Amex. The bottom line is simple: banks cannot be allowed to treat cardholders as cash cows while regulators remain passive. The financial system’s credibility and public trust are at stake. CBSL must act now, decisively and visibly, or risk being complicit in this exploitation. Ordinary Sri Lankans deserve fair treatment, transparency, and protection—not an endless drain on their wallets every time they swipe their cards abroad
