The Sri Lanka Police Headquarters has issued a public alert urging citizens to exercise caution when obtaining loans via the Internet or mobile applications, following a surge in complaints about fraudulent and exploitative lending practices.
According to the Police, numerous entities are currently advertising instant loans online and through mobile platforms, often promoting them with misleadingly attractive offers. In some cases, individuals have received unsolicited phone calls encouraging them to apply for loans that purportedly require no collateral.
However, police reports indicate that many borrowers have fallen into severe financial distress after taking such loans without properly reviewing interest rates or repayment conditions.
Daily complaints reveal that some borrowers are being charged exorbitant interest rates, while others face harassment from lenders, including frequent phone calls and defamatory social media posts aimed at shaming those unable to make timely payments.
In response, the Sri Lanka Police, together with the Non-Banking Financial Institutions Supervision Department of the Central Bank of Sri Lanka (CBSL), conducted a joint investigation. Findings confirmed that many online lending entities are not regulated by the Central Bank.
The CBSL has since announced that measures are being taken to bring such operators under proper regulatory oversight.
The Police urged the public to obtain loans only from institutions licensed and regulated by the Central Bank, warning that unregulated lenders pose serious risks of financial exploitation.
Citizens are advised to report any suspicious or unethical lending activities to their nearest police station or visit the official Central Bank website for guidance and verification.
