Draft Bill on microfinance, credit regulation gets Cabinet nod

Thursday, 25 September 2025 05:20 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved the publication of the Micro Finance and Credit Regulation Authority draft Bill in the Government Gazette, following clearance from the Attorney General, before submitting it to Parliament for approval.

The decision follows concerns that the existing Micro Finance Act No. 6 of 2016 does not provide an adequate regulatory framework for the sector.

The move comes after seven petitions were filed in the Supreme Court challenging an earlier version of the draft Bill, which had been published in the Government Gazette. Taking into account the Court’s decision and the guidance of Parliament’s Sector Supervision Committee on Redressing the Economic Crisis, the Finance, Planning and Economic Development, together with the Central Bank of Sri Lanka, prepared a revised draft.

The new bill received Cabinet approval on 11 August.

At the weekly post-Cabinet meeting media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said, “The proposed legislation is expected to establish a more comprehensive regulatory authority to oversee microfinance and credit operations, addressing long-standing concerns about unregulated lending practices and strengthening protections for borrowers.”

The proposal to this effect submitted by President Anura Kumara Disanayake, in his capacity as the Finance, Planning and Economic Development was approved by the Cabinet of Ministers.