⚖️ Sri Lanka Enacts New Microfinance & Credit Regulatory Act

Speaker Dr. Jagath Wickramaratne has officially endorsed the Microfinance and Credit Regulatory Authority Act, No. 9 of 2026, bringing a new oversight framework into immediate effect. • New Regulatory Authority: Establishes a specialized body to supervise and regulate all licensed money lenders and microfinance institutions across Sri Lanka. • Legislative Shift: Formally repeals the Microfinance Act No. 6 of 2016, replacing it with a more robust legal structure to address modern credit challenges. • Core Objectives: Focuses on strengthening consumer protection for vulnerable borrowers and ensuring seamless coordination with the Central Bank of Sri Lanka (CBSL). • Economic Impact: Aims to stabilize the microfinance sector—a critical source of liquidity for SMEs and rural employment—by curbing predatory lending practices. • Timeline: Initially presented in November 2025 and passed by Parliament on March 4, 2026, the bill is now officially law. This move is expected to improve credit discipline and institutional transparency within the broader financial services sector.