Cabinet approval has been granted to present the new Microfinance and Credit Regulatory Authority Bill to Parliament.
Due to the inadequacy of provisions in the existing Microfinance Act No. 6 of 2016 to establish a comprehensive regulatory framework for Sri Lanka’s microfinance sector, prior Cabinet approval had already been granted to introduce a new regulatory authority.
Following the publication of the draft bill in the Government Gazette, seven petitions were filed in the Supreme Court by various parties opposing the proposed legislation.
Taking into account the Supreme Court’s rulings on these petitions and the guidance provided by Parliament’s Subcommittee on Alleviating the Impact of the Economic Crisis, the Ministry of Finance, along with the Central Bank of Sri Lanka, focused on drafting a revised bill.
Accordingly, Cabinet approval for introducing the new Microfinance and Credit Regulatory Authority Bill was granted at the Cabinet meeting held on 11 August 2025.
The revised bill, prepared by the legislative draftsman, has received clearance from the Attorney General.
The Cabinet has now approved the President’s proposal, in his capacity as Minister of Finance, to publish the bill in the Government Gazette and subsequently present it to Parliament for approval. (Newswire)