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Thursday Oct 02, 2025
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The Cabinet of Ministers on Monday granted policy approval to introduce the Microfinance and Loan Regulation Authority Act, paving the way for the drafting of a revised bill aimed at strengthening oversight of the microfinance sector.
The move directs the Legal Draftsman to prepare a new draft based on the final report compiled by the appointed Policy and Monitoring Committee.
The report incorporates stakeholder proposals, alternative solutions, and amendments in line with a Supreme Court order.
The move follows earlier Cabinet approval in October 2023 to publish a draft bill repealing the Microfinance Act, No. 6 of 2016. That draft was subsequently challenged in the Supreme Court, prompting a review by the Parliamentary Sectoral Supervisory Committee on the Appeasement of the Impact of the Economic Crisis.
The Committee recommended the formation of a dedicated body to study concerns raised by various parties. The resulting report now forms the foundation of the new legislative proposal, which will be gazetted before being submitted to the Parliament for approval.
The proposal to this effect, presented by President Anura Kumara Disanayake in his capacity as the Finance, Planning and Economic Development Minister, was approved by the Cabinet of Ministers.
