According to data of the Central Bank of Sri Lanka, the public has borrowed a staggering Rs. 643 billion by pawning jewelry in the last 06 months.
Gold lending has significantly increased recently, with commercial banks raising the value from Rs. 57,000 to Rs. 60,000 per pound.
In contrast, the Central Bank reduced the annual interest rate on gold loans to 10%. Also, the amount paid per pound of gold by some private financial institutions has been increased to Rs. 65,000.
Meanwhile, it has also been revealed that one out of every four credit card users in the country is currently unable to pay back.
According to Central Bank data, 41% of credit card users have defaulted.
Credit card transactions in the second quarter of 2020 amounted to Rs. 38.3 billion, of which Rs. 15.7 billion were defaulted.
(Source : Aruna)
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