A Critical Analysis of the Laws Regulating Credit Card Facilities in Sri Lanka Focusing on Consumer Protection

Abstract

This paper critically analyses the legal framework regulating Credit Card facilities in Sri Lanka, focusing on the aspect of consumer protection. The research identifies the existing legal framework in relation to Credit Card facilities and critically evaluates the same through a comparison with the relevant International Standards and the exiting legal framework for banking and financial regulation in United Kingdom and Unites States of America. The overall research is based on the positivist paradigm and the doctrinal research method was primarily used for the research to obtain an in-depth knowledge of the existing legal regimes. Qualitative data gathered from both primary and secondary sources were used for the research. The researcher identified several flaws in the existing legal framework including lack of cohesion and uniformity in laws, lack of proper monitoring and enforcement mechanisms due to the absence of a dedicated authority responsible for regulation and enforcement of the law, lack of financial literacy and failure of the law to address the pressing issues faced by the consumer in the relevant industry