The Central Bank of Sri Lanka (CBSL) has issued the Financial Consumer Protection Regulations, No. 01 of 2023 in terms of Section 10 (c) of the Monetary Law Act, No.58 of 1949.

According to the CBSL, an Extraordinary Gazette No. 2344/17 was published on the Financial Consumer Protection Regulations on August 09. 

The CBSL further stated that considering the time required to ensure full compliance with the Regulations in a challenging environment, these Regulations will be implemented on an incremental basis, within 12 months from the issue date. 

Stating that these Regulations will apply to all Financial Service Providers regulated by the CBSL on a uniform basis, the bank said they are expected to strengthen the current financial consumer protection frameworks of the CBSL, particularly Financial Consumer Protection directions issued under the Banking Act, the Finance Business Act and the Finance Leasing Act. 

Further, these regulations, formulated in line with international standards will establish the foundation for market conduct supervision by the CBSL facilitating the development of a trusted and stable financial system in Sri Lanka.

The regulations encompass a wide range of requirements and good practices designed to ensure that individuals and businesses dealing with financial products and services of regulated financial institutions are treated in a fair and transparent manner with improved service levels enabling them to take well-informed decisions on their finance activities with more confidence. 

Latest developments in the fields of digital financial services and customer data protection as well as requirements of financial consumers with special needs have also been incorporated into these Regulations. 

Further, these regulations provide a well-structured internal complaint-handling mechanism supplemented by an alternative dispute resolution mechanism provided by the CBSL. 

For the first time in Sri Lanka, the CBSL, through these Regulations, facilitates the conduct of separate and comprehensive customer protection supervision namely Market Conduct Supervision with a full range of regulatory and enforcement powers to the CBSL and officers authorised under these Regulations.

The public can access the Regulations available at  https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/cdg/fcrd_regulations_no_01_of_2023_e.pdf. (NewsWire)

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The Financial Consumer Relations Department (FCRD) of the Central Bank of Sri Lanka (CBSL) has developed a comprehensive set of new regulations aiming at introducing an integrated financial consumer protection framework for entities regulated by the CBSL.

Issuing a statement, the CBSL stated that this measure has been taken having recognized the need to institutionalize financial consumer protection in the delivery of services by financial institutions regulated by the CBSL.

These regulations are expected to define specific regulatory powers for the supervisors to facilitate market conduct supervision while providing clarity to both the service providers and recipients on the areas to be considered in delivering/ obtaining financial services aiming at minimizing the need for financial consumers to make subsequent complaints, the bank stated.

The CBSL further stated that in order to have wider stakeholder consultation, FCRD has invited the relevant industry associations and the general public to submit their observations/ comments/ suggestions on the draft Regulations.

The public can access the draft Regulations (English) available on the CBSL website (Web link for the draft Regulation :

https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/consultation_paper_20230120_regulations_on_financial_consumer_protection_e.pdf 

The CBSL stated that the public can send their observations/ comments/ suggestions using the following mediums on or before 17 February 2023. (NewsWire)

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