Online Act in Motion

Online Act in Motion

Several online money lending companies, affiliated with the Digital Alternative Lending Association (DALA), have initiated legal action under the Online Safety Act. They have filed cases before Attanagalla District Judge Kesara Samaradivakara, seeking a total compensation of Rs 4.25 billion from three individuals for allegedly defaming financial institutions through social media.

The defendants, identified as Agampodige Thivanka Chaturanga Lakshman from Veyangoda, Tharinda Bandara Thiskumara from Gampola, and Nilantha Kumara from Maho, were served notices to appear before the Court on April 22 during a hearing held on April 8.

“online mafia,”

The plaintiff companies, including AV Business Solutions (CashX), Fintech Software Solutions (Loanme), Zephyr Solutions (Pvt) Ltd. (Lotus Loan), Oncredit, and SF Group (, are seeking Rs 500 million in compensation from each defendant for alleged defamation on platforms like Facebook and WhatsApp. Additionally, they are requesting an extra Rs 350 million from each defendant.

The accusations against the defendants include spreading false and hateful statements, branding online loan companies as an “online mafia,” and conducting malicious propaganda under the title ‘Online Mafia Nisa Asadharanayata Lakwuwan’ (Those subjected to injustice due to online credit mafia).

The complainants argue that their businesses operate lawfully and are regulated by registered bodies under the Companies Act No. 07 of 2007. They also stress that providing loans through online platforms is a common practice in microfinance globally, citing operations in numerous countries.

The plaintiffs have asked the Court to issue judgments against the defendants for the alleged organized distribution of false and illegal statements. They also intend to seek injunctions to prevent further acts from the defendants.

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