Banks hampering, small time pawning centres

Hathoon Sheriffdeen

The entry of the public and private banks into the pawning industry has put breaks on the pawning industry. The banks are capable of financing mega projects and need not necessarily go into pawning.

The entry of banks to the pawning sector has de-motivated the small-timers, Senior Vice President, Sri Lanka Jewellers’ Association, A, V Kumar said. There were hundred to two hundred pawning centres in Sea Street before the entry of the banks into the trade.

It has now reduced to about 10 to fifteen, recently. Kumar said.

“I would say the banking sector should focus on funding prominent projects to develop the economy of the country. Banks are capable of financing mega projects. The pawn broking trade is not a suitable trade for a banking institutions,” Kumar said.

“We have around 4000 pawning centres islandwide. Our vital customers are the domestic clientele. Usually its Rs 5,000 to Rs 10,000 on a trade. We are not capable of financing large projects, Kumar said.

Due to the jewellery prices rising, the redemption of pawned items has reduced, he said. The pawning industry faces a problem in finding genuine jewellers, all the time of pawning. There are interruptions in this business by the police, searching for stolen jewellery, the Senior Vice President said.

We have received guidelines to protect the industry from unnecessary police interruptions now. There were 10 to 15 police visits a week earlier,but now it has reduced. ‘We are strict in trading with new customers. The industry is reluctant to expand due to these reasons. President, Sri Lanka Jewellers’ Association, K. Radhakrishnan said.