In The Economist: Hema Bansal on Over-Indebtedness in Sri Lanka

Consumers are being charged sky-high interest rates on easy credit, leading to desperation—or worse—according to the piece.

Bansal, the Smart Campaign‘s Senior Director in South and Southeast Asia, notes that the problem over-indebtedness is more severe in the island country than elsewhere.

She also points out that the government’s decision to write off business loans of up to 100,000 rupees falls short.

“One-off measures will not do, says Ms Bansal: Sri Lanka needs properly enforced rules that prevent over-indebtedness and ensure fair treatment of borrowers.”

Read the full article (soft paywall).

The Smart Campaign

The Smart Campaign works globally to create an environment in which financial services are delivered safely and responsibly to low-income clients.

Stay informed. Subscribe to our newsletter.