Govt withdraws Microfinance & Credit Regulatory Authority Bill

April 3, 2024 at 4:21 PM

The Ministry of Finance has agreed to withdraw the Microfinance and Credit Regulatory Authority Bill for redrafting. 

The ministry has expressed its commitment to redrafting the Bill in consultation with stakeholders, ensuring that it fosters a healthy environment for both microfinance and Small and Medium Enterprises (SMEs).

According to a Parliament statement, the Committee on Public Finance (COPF), chaired by MP Harsha de Silva, played a key role in advancing inclusive policymaking for the Microfinance and Credit Regulatory Authority Bill.

Following extensive consultations with a diverse range of stakeholders, including community-based organizations, transparency advocates, think tanks, and fintech companies, the COPF’s engagement yielded a significant development.

The Ministry of Finance initially presented the Bill. However, after careful consideration of stakeholder feedback received during the COPF meeting and recordings reviewed, the Ministry recognized that the Bill, in its current form, did not effectively address their original objectives. Fears existed that the Bill might inadvertently stifle microfinance activities in Sri Lanka.

This decision by the Ministry of Finance to withdraw the Bill for redrafting reflects a commitment to transparent and inclusive policymaking. By actively engaging various stakeholders, the COPF identified potential issues and fostered a collaborative environment for achieving a positive outcome.

This episode also highlights the vital role Parliament plays within a democratic system. The COPF, through its diligent work, demonstrates how legislative oversight can ensure proposed policies are well-rounded and serve the best interests of the public.

State MinisterSuren Raghavan, and Members of Parliament Rauff Hakeem, Nimal Lanza, Mayantha Dissanayake, Chandima Weerakkody, Duminda Dissanayake, Major Pradeep Undugoda, and Madhura Withanage participated in the COPF meeting. (NewsWire)