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.
Online loans that lead to conflicts between countries
Meanwhile, Indian media reported that the police investigating the suicide of a family of four in Kerala, India, have turned their attention to a group operating from Sri Lanka that gives instant loans online.
Below is a report published on the incident.
On September 12, 39-year-old Nijo, his wife Shilpa (32) died by suicide and their bodies were found at home. Their children Abel (7) and Aaron (5) were killed by suffocation.
The investigation took a turn when the police found the number used to send obscene pictures of one of the deceased to his relatives.
“During the investigation, we realized that Shilpa had obtained loans from online lending institutions. She had difficulty repaying them. Later, these companies resorted to sending obscene messages to Shilpa and their relatives. When we looked at that mobile phone number, we realized that it was registered in Sri Lanka. In fact, those groups have been operating from Sri Lanka,” said an Indian police spokesperson.
Diplomatic sources said that this situation can affect the goodwill between the countries as well.
We will make a full disclosure about these companies including their boards of directors in the future.
The United Nations Human Rights High Commissioner Volker Türk will visit Sri Lanka this month or early July, a Foreign Ministry source confirmed. No dates have been finalised for the visit, though the government has agreed to the visit by Mr. Turk.
It’ll be the first time in nine years that a UN Human Rights Commissioner will be visiting Sri Lanka, the last being Zeid Ra’ad Al Hussein in February 2016 during Maithripala Sirisena’s presidencyMr. Turk, an Austrian national who took up his duties in October 2022, will visit at a time the government grapples with how it will address human rights concerns raised by the international
community.
In his report to the UN body in August last year, just ahead of Sri Lanka’s presidential and parliamentary elections, Mr. Turk said the newly elected government should recommit to addressing the root causes of conflict and undertake fundamental constitutional and institutional reforms to address the accountability gap and work towards reconciliation.
These include the immediate moratorium on the Prevention of Terrorism Act and assurances that any replacement legislation is consistent with international human rights law, repeals or amends existing laws or proposed laws that unduly restrict the rights to freedom of opinion and expression, association, and peaceful assembly, including the Online Safety Act and the ICCPR Act.
Mr. Turk’s predecessor Michelle Bachelet requested a visit to Sri Lanka, but the matter was put under consideration, and the visit did not materialise.
The Office of the High Commissioner for Human Rights (OHCHR) set up the Sri Lanka accountability project, an external evidence-gathering mechanism within the OHCHR, during Ms Bachelet’s period in office, a move strongly opposed by the government.
The OHCHR says that as of July 5, 2024, the repository established within the framework of the OHCHR project comprises 96,215 items and contains information from more than 470 different sources (more than 220 witnesses and 250 organisations), including international and multilateral organisations.
Foreign Minister Vijitha Herath, who addressed the high-level segment of the UNHRC in March this year, rejected the OHCHR Sri Lanka project and outlined government plans for a credible and sound domestic process to address accountability issues in the country.
“We will ensure that the domestic mechanisms and processes established to address challenges emanating from the conflict will continue their work in an independent and credible manner within the constitutional framework,” the minister told the UNHRC.
Despite a visit by the Human Rights Commissioner, the government will remain opposed to any international legal options to advance accountability in Sri Lanka and maintain that there are adequate domestic mechanisms to address accountability issues.
Prominent trade union leader Ranjan Jayalal has officially been appointed as the new Mayor of the Kaduwela Municipal Council.
Jayalal, a key member of the Ceylon Electricity Board Employees’ Union and a strong advocate for labor rights, was nominated by the National People’s Power (NPP) following their recent victory at the local government elections.
His appointment was formally confirmed through the government gazette issued by the Election Commission on May 31.
If Sri Lanka is interested in joining the BRICS alliance, the country must take practical steps, says the Russian Ambassador to Sri Lanka, Levan S. Jagaryan.
Speaking during an event at the Bandaranaike International Centre for International Studies in Colombo, Ambassador Levan S. Jagaryan said Russia and China have been offering support to Sri Lanka, but he has not seen adequate interests from the Sri Lankan side.
Responding to a question raised by a journalist about Sri Lanka joining BRICS, the Russian Ambassador to Sri Lanka said, he has been questioned about the matter on several occasions.
Ambassador Levan S. Jagaryan said, “Last October, on the 1st, I met with President Anura Kumar Dissanayake and brought with me an invitation letter from the President of Russia, inviting Sri Lanka to participate in the BRICS summit. I spoke with a language interpreter, but I don’t know if the translation was accurate. The President told me that due to the upcoming general elections, he wouldn’t be able to visit Russia. If Sri Lanka is to join BRICS, it’s not just a matter of Russia; all the member countries need to agree, and there are several steps to take before that happens.”
Russian Ambassador to Sri Lanka Jagaryan stated that he has not seen much interest at the moment and therefore requested Sri Lanka to take some practical steps, if it is serious about joining BRICS.
(adaderana.lk) (This story, originally published by adaderana.lk has not been edited by SLM staff)