In a significant move aimed at bringing accountability and control to the microfinance sector, a new authority will be established to regulate microfinance institutions, according to Dr Ranjith Siyambalapitiya, the state minister of finance and plantation enterprise.
Addressing journalists at the 2023 Youth Club Games held at the Ruwanwella Public Stadium, Dr Siyambalapitiya highlighted the concerning lack of registration among microfinance institutions in the country. Out of the estimated 11,000 microfinance institutions, only five have been officially registered, he revealed.
This unregulated operation of microfinance institutions poses a serious problem, as they are functioning without any oversight or control, the state minister emphasized. He further pointed out that approximately 3 million people have encountered difficulties due to microfinance activities, making it an international issue that demands immediate attention.
The state minister's announcement has been met with anticipation and support from experts and stakeholders in the microfinance sector. As the new authority takes shape, it is expected to pave the way for a more robust and sustainable microfinance industry in the country.
