CB resolves 68% of actionable consumer complaints in 2024 amid enhanced regulatory push

The Central Bank of Sri Lanka (CB) has addressed 68 percent of actionable financial consumer complaints in 2024, underscoring its intensified efforts to strengthen consumer protection mechanisms, according to its Financial Statements and Operations 2024 report.  

A total of 3,374 complaints were lodged with the CB during the year, primarily concerning requests for concessions on financing facilities, unethical practices, high-interest rates, excessive fees, and financial scams. The regulator resolved nearly seven out of ten grievances where corrective action was feasible, reflecting improved oversight under its newly enforced Financial Consumer Protection Regulations (FCP Regulations) No.01 of 2023.  

The regulations, fully implemented in August 2024, empowered the CB to conduct rigorous market conduct supervision, including risk-based evaluations using nine Key Risk Indicators (KRIs) to identify systemic consumer risks. This framework guided a full-scope compliance examination of a licensed bank and thematic reviews of three others, revealing gaps in areas such as transparency, disclosure, and fair business practices.  

Meanwhile, the CB’s 1935 hotline emerged as a critical channel, answering 49,560 telephone inquiries with a 94 percent response rate. The contact center also provided trilingual support, enhancing accessibility for consumers nationwide.  

To bolster compliance, the CBSL conducted training sessions for employees of regulated Financial Service Providers (FSPs) and engaged with international bodies like the International Finance Corporation (IFC) and the Alliance for Financial Inclusion (AFI). These collaborations aim to refine Sri Lanka’s consumer protection framework and align it with global standards. 

“The introduction of the Market Conduct Supervision Manual and risk-based assessments has been pivotal in streamlining our oversight,” the CB stated, emphasising ongoing efforts to curb unfair practices and improve accountability in the financial sector.  

With 2024 marking a year of regulatory consolidation, the CBSL reaffirmed its commitment to safeguarding consumer interests through continuous monitoring, public education, and cross-border partnerships. (NF)