The Sunday Times: Sri Lanka: Sunday, August 27, 2017.
Over 80 per
cent of Sri Lanka’s 21 million people use either a debit card or a credit card
for their financial transactions, according to Central Bank (CB) data.
Responding to
a RTI request from the Business Times on data on credit and debit cards and the
exposure, the CB said there was a total of 17,093,239 debit cards and 1,355,704
credit cards in use, making it a sum total of 18.4 million cards. While credit
cards permit the cardholder to buy goods on credit, the debit card confines
purchases based on one’s bank balance.
The total
amount owed to banks as at March 31, 2017 was Rs. 77.7 billion from both
categories of cards, the banking regulator said adding that the CB has not
placed a cap or limit on the total exposure of banks to these cards.
The CB said
customers can demand information on interest rates charged on card balances. If
a bank refuses to accede to such requests, the issues can be referred to the
Bank Supervision Department of the CB and the Financial Ombudsman of Sri Lanka.
In terms of provisions of the Banking Act, the CB has the authority to sue
non-compliant banks. However, prior to initiating litigation the CB ensures
that all other corrective measures have been taken to ensure compliance with
the regulatory requirements.
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