The Central Bank of Sri Lanka (CBSL) has issued a directive to all media institutions, urging them to verify whether advertisers are legally authorized to accept deposits before publishing advertisements or conducting interviews that promote such businesses.
In a letter dated 12 June addressed to Chairpersons of all media institutions, the Department of Supervision of Non-Bank Financial Institutions said it has become increasingly difficult to prevent members of the public from falling victim to institutions and individuals accepting deposits without authorization.
The CBSL noted that despite ongoing awareness campaigns, unauthorized deposit-taking entities continue to expand their activities and often use media platforms to promote businesses that display features of “deposits” as defined under the Finance Business Act (FBA).
The regulator reminded media institutions that under Sections 49 and 56(4) of the Finance Business Act, they are required to verify with the relevant advertiser whether they are authorized under the law to accept deposits before publishing advertisements soliciting deposits. Failure to do so amounts to an offence under the Act.
CBSL further requested media organizations to verify with the Department of Supervision of Non-Bank Financial Institutions before publishing advertisements in print, electronic or social media, or conducting interviews and similar activities involving individuals or entities promoting businesses that appear to accept deposits.
The letter was copied to the Chairperson of the Sri Lanka Press Council. (Newswire)
