Low Financial Literacy Leading to Scams, Warns Central Bank Boss

COLOMBO (News 1st); Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, has emphasized the critical need for improved financial literacy across the nation to ensure sustainable economic growth and individual financial security.

Dr. Weerasinghe highlighted the disparity between general literacy rates and financial literacy rates in Sri Lanka. 

"While our overall literacy rate stands impressively at over 90%, financial literacy lags behind at approximately 60%," he noted. This gap, he explained, can lead to significant financial challenges even for well-educated individuals.

Dr. Weerasinghe pointed out that a lack of financial literacy makes people vulnerable to various financial pitfalls, including illegal schemes and scams. "We are witnessing many individuals falling prey to bribery schemes, fraudulent investment opportunities, and illegal deposit-taking activities, resulting in substantial financial losses," he said.

He also stressed the importance of understanding investment risks and returns. "When making investment decisions, it is crucial to have a thorough understanding of the associated risks and the security of the investment," Dr. Weerasinghe advised. He believes that financial education should begin at the school level to equip future generations with the necessary skills to make informed financial decisions.