Central Bank Governor Dr. Nandalal Weerasinghe has warned that the growing use of digital banking and online financial services could expose consumers to cyberattacks, fraud and personal data breaches.
Speaking at the Sri Lanka FinTech Festival on November 3, he said financial technology was changing how people and businesses manage money. However, this growth also creates new risks that require stronger safeguards.
Mobile banking, internet banking and digital payments have become part of everyday financial activity. As more services move online, consumers and financial institutions face greater exposure to digital threats.
Dr. Weerasinghe identified cyberattacks, operational disruptions, financial fraud and data breaches among the risks linked to financial technology. He also raised concerns about inadequate information provided to consumers, excessive borrowing and the growing dependence on a small number of technology providers.
“Financial stability cannot be compromised and must be preserved at all costs. As we embrace the possibilities of FinTech, innovation must advance while safeguarding confidence in the financial system and protecting the interests of the public.”
Digital Finance Brings New Risks
The Governor also highlighted risks arising from cross-border digital transactions. Such transactions can make regulatory supervision more difficult, particularly when financial services involve providers operating across different countries.
Certain digital assets can expose consumers to sharp price changes. They may also create opportunities for illegal financial activities.
Meanwhile, the growing concentration of critical financial services among a limited number of technology providers could create additional vulnerabilities. Disruptions affecting these providers may also affect services relied upon by financial institutions and customers.
Central Bank Supports Regulated Innovation
Despite these concerns, Dr. Weerasinghe said digital technology would continue to create opportunities for the financial sector.
Future developments could include digital identity services, data-based lending, cross-border payment connections and digital investment products.
He also highlighted the Central Bank’s FinTech Regulatory Sandbox. This programme allows eligible financial technology solutions to be tested within a controlled environment under appropriate safeguards.
The Central Bank’s position is to support financial innovation while maintaining effective supervision, sound risk management and consumer protection.
For people using mobile banking, online payments and other digital financial services, the Governor’s warning highlights the growing importance of security and trust as financial activity moves further online.
Central Bank of Sri Lanka (CBSL) Online Scam
Last modified: November 4, 2026
