Home Sri Lanka Report on draft bill to regulate microfinance handed over to Finance Ministry
Sri Lanka

Report on draft bill to regulate microfinance handed over to Finance Ministry

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A committee that reviewed the draft of the controversial microfinance and credit regulatory authority bill handed over its report to the finance ministry yesterday (09).

In 2018, finance minister at the time Mangala Samaraweera instructed his ministry to formulate laws to strengthen regulating the micro-financiers who operate without a supervisory mechanism.

Several clauses found to be unconstitutional

On 30 October 2023, the government at the time tabled the draft in parliament.

It faced stiff opposition from society that no consultation with the stakeholders had been done in its formulation.

Victims of microfinanciers and civil society representatives filed six fundamental rights petitions against it in the Supreme Court.

After the hearings, the court found several of the clauses in the draft were unconstitutional.

Amid pressure, the bill was withdrawn.

Finance ministry committee

The finance ministry appointed a nine-member committee, headed by the NGOs National Secretariat’s director-general Sanjeewa Wimalagunaratne, to review it.

Following five months of deliberations, the committee handed over its report to the head of the ministry’s development finance department Manjula Hettiarachchi.

(The Leader)

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