Many people have faced inconveniences due to online lending companies operating in the country without obtaining the permission to give loans using internet or telephone, as stipulated by the Central Bank of Sri Lanka (CBSL) in 2019.

“Though online transactions are possible under the Electronic Transactions Act, compliance with the CBSL circular is mandatory for lending”

It has now been revealed that most of the lending companies have obtained company registration in Sri Lanka as a Sri Lankan company, but their parent companies are operating from overseas.Accordingly, economic experts pointed out that online loans will add more pressure on the country which is already going through an economic crisis.

The reason for this is that the amount deposited at these institutions that exploit the customers on 50% or 100% interest, ends up in another country.

Since none of these institutions have been registered with the CBSL, the source of origin of the money earned by the companies and where the amount ends up remain a question.

Doubts have also been raised whether a part of this money is used to fund the underworld and drug dealers.

What does the Cyber Crime Unit say?

The Cyber Crime Unit of the Criminal Investigation Department (CID) said that those who are facing inconveniences due to the actions, pressures and other intimidations caused by these institutions can complain to the police in their jurisdiction.

Online lenders impersonate police officers

Meanwhile, these institutions are also carrying out a campaign of intimidation by sending fake messages saying that there are police complaints against the borrowers.

It has now been revealed that these groups also receive the support of corrupt police officers.

Below is an SMS with a fake complaint number sent by one such company.