## Finance Business Act to Undergo Major Overhaul 📈

The Cabinet has greenlit the drafting of a Bill to amend the Finance Business Act, No. 42 of 2011, marking the first comprehensive review of the legislation in nearly 15 years. The move aims to modernize the regulatory framework governing the non-bank financial sector to align with evolving global standards. • Core Objectives: The amendments focus on reinforcing financial sector stability and improving regulatory oversight to mitigate emerging risks. • Key Reform Areas: • Streamlined licensing procedures and enhanced regulatory supervision. • Strengthening corporate governance and resolution mechanisms. • Implementing stricter enforcement against unauthorized deposit-taking. • Impact on Stakeholders: The revised framework is designed to boost investor and depositor confidence by ensuring higher levels of compliance and accountability among finance companies. • Current Status: Based on official Cabinet briefings, the Legal Draftsman has been instructed to prepare the Bill following a proposal by President Anura Kumara Dissanayake in his capacity as the Finance Minister.