Financial Crime World

Title: New Regulations Strengthen Financial Consumer Protection in Sri Lanka

The Central Bank of Sri Lanka (CBSL) has issued new regulations, named Financial Consumer Protection Regulations, No. 01 of 2023, to enhance consumer protection in the financial sector.

Key Objectives

According to the CBSL, these regulations will:

  • Enhance transparency
  • Ensure fair dealing
  • Improve overall consumer experience in financial transactions

They cover all financial services and products regulated by the CBSL, including banking, insurance, and leasing services.

Provisions of the New Regulations

The new regulations include the following provisions:

  • Establishment of Financial Dispute Resolution and Protection Mechanism: Creating a platform for resolving disputes between financial institutions and consumers.
  • Clear and Concise Disclosure: Requiring financial institutions to provide clear and concise information to consumers regarding terms and conditions.

Rising Consumer Complaints

These regulations come in response to increasing consumer complaints regarding mis-selling and lack of transparency in financial transactions.

Building Trust and Confidence

The CBSL aims to build trust and confidence in the financial sector by ensuring consumers receive fair treatment and adequate protection.

“These new regulations are a significant step towards ensuring that consumers are treated fairly in the financial sector. We believe that transparency, fairness, and open communication are essential components of a robust financial system.”

  • Dr. Nandalal Weerasinghe, CBSL Governor

Effective Date

The regulations are set to come into effect on January 1, 2024. Financial institutions are advised to familiarize themselves with the new regulations and make necessary provisions to comply.

Financial Literacy and Consumer Education

The CBSL’s ongoing commitment to financial literacy and consumer education is expected to be further bolstered by these regulations.

Promoting a Consumer-Centric Financial Sector

This latest move by the CBSL is part of its efforts to foster a stable and inclusive financial system in Sri Lanka. The regulations are expected to significantly contribute to enhancing consumer confidence and promoting financial stability in the country.