According to media reports, approximately 8.5 million people are listed in the Credit Information Bureau of Sri Lanka (CRIB) as a result of interest rate increases and their inability to make required payments.
According to Asanka Pothupitiya, Chairman of the Leasing and Loan Repayment Members Association (LLMA), people are unable to pay interest due to the current economic crisis.
“We demonstrated against the increase in interest rates.” The loan interest rate has risen from 8.5% to 18%, and the leasing rate has risen from 12% to 34%. There is no pay increase for government or private sector employees. The prices of necessities are also exorbitant. “How are they going to pay the interest?”
As a result, many people have difficulty paying their housing and leasing payments.
The LLMA also expressed concern about their members’ failure to repay vehicle loan instalments to leasing companies and requested Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe to intervene in this matter and direct the leasing companies to grant them a significant time period of at least six months to one year to re-pay the leasing instalments without having to pay an additional fine. Pothupitiya stated that nearly 200,000 people have already joined the Association and that nearly all of them are currently experiencing financial difficulties in making vehicle loan payments.