In a significant stride towards financial sector governance, the Sri Lankan government is poised to unveil a comprehensive regulatory framework with the impending Microfinance & Credit Regulatory Authority Bill. Anticipated to be presented to parliament next week, this legislation aims to instate a structured regulatory environment for moneylending and microfinance businesses.
The primary objective of this new regulatory framework is to safeguard consumers from exploitative practices while simultaneously promoting responsible lending practices within the financial sector. By establishing clear guidelines and oversight mechanisms, the government seeks to create a fair and transparent environment for both lenders and borrowers.
In addition to its consumer protection goals, the bill also seeks to address perceived shortcomings in the existing regulatory landscape by proposing the repeal of the Microfinance Act of 2016. This strategic move reflects the government’s commitment to refining and strengthening the regulatory framework, ensuring that it is better equipped to meet the evolving challenges and dynamics of the financial industry.
The forthcoming parliamentary presentation of the Microfinance & Credit Regulatory Authority Bill signals a proactive approach by the Sri Lankan government to foster a more resilient and consumer-friendly financial ecosystem.
