FEATURE_The Microfinance and Credit Authority Act: A Long-Awaited Reform for Sri Lanka’s Microfinance SectorNewsBy Imran NafeerIntroductionSri Lanka’s journey toward a comprehensive microfinance regulatory framework has been long, complex, and delayed. It was not until 2016 that Sri Lanka enacted its first sector-specific law, the Microfinance Act No. After years of policy debate, institutional failures, consumer protection concerns, and growing public demand for stronger oversight, the proposed Microfinance and Credit Authority Act is a timely and much-needed step. Challenges Microfinance Institutions May Face When Becoming Licensed Microfinance Providers Under the New ActThe Microfinance and Credit Regulatory Authority Act, 2025 marks a major shift in Sri Lanka’s microfinance landscape. ConclusionThe Microfinance and Credit Regulatory Authority Act, 2025 offers an opportunity to professionalize and stabilize Sri Lanka’s microfinance sector, protect customers and build long-term trust.

Source: Sunday Times December 23, 2025 05:46 UTC