Parliamentary Committee Urges Faster Implementation of Microfinance Act 📈

The Sectoral Oversight Committee on Economic Development and International Relations, chaired by MP Lakmali Hemachandra, met with the Sri Lanka Microfinance Practitioners’ Association to discuss accelerating the implementation of the Microfinance and Credit Regulatory Authority Act. • Key Objectives & Regulatory Priorities: - Curb informal, predatory lending practices imposing excessively high interest rates. - Establish a fair regulatory framework to safeguard borrowers while supporting legitimate microfinance entities. - Address legal and operational challenges, including the cost of funds and restrictions on deposit collection. • Proposed Industry Enhancements: - Streamline the licensing process for existing institutions. - Allow regulated entities to accept limited public deposits under supervisory oversight. - Explore mechanisms to route concessional international funding (e.g., Asian Development Bank) to reduce end-user lending rates. The initiative aims to strengthen consumer protection and foster financial inclusion across Sri Lanka's microfinance sector, supporting sustainable grass-roots economic activity and employment.