📝 SL Parliament Reviews Draft Bill to Regulate Microfinance Sector

• Parliamentary committees, including the Sectoral Oversight Committee on Economic Development and the Women Parliamentarians’ Caucus, reviewed the draft Bill to establish the Microfinance and Credit Regulatory Authority last week (Nov 20). • Primary Objective: Create a formal Authority to oversee money-lending and microfinance activities, strengthen customer protection, and repeal the existing Microfinance Act of 2016. • The updated draft incorporates amendments ordered by the Supreme Court and other policy revisions, with the Bill now expected to be presented to Parliament. • Key Committee Concern: The proposed Board of Directors lacks representation for microfinance customers, who are directly affected by the regulatory framework. • Members stressed the disproportionate debt burden on women and proposed adding a representative from the National Commission on Women or a relevant ministry to the Board. • Committees emphasised that the legislation's core purpose must be to prevent severe indebtedness and community crises through firm regulatory oversight. • Officials from CBSL and the Treasury were instructed to incorporate these necessary amendments prior to the Bill being tabled.