A new bill aimed at regulating non-banking lending institutions has been published, proposing strict penalties for non-compliance, including fines of up to Rs. 5 million, imprisonment of up to five years, or both, upon conviction in a magistrate’s court.
The proposed Microfinance and Credit Regulatory Authority Bill was issued by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development.
According to the draft, the legislation seeks to strengthen oversight of moneylending and microfinance businesses, enhance customer protection, and establish clearer accountability standards. The bill also proposes the repeal of the existing Microfinance Act, No. 6 of 2016, paving the way for a more comprehensive regulatory framework.
