Hon. Thilina Samarakoon

Hon. Thilina Samarakoon concluded his remarks in support of a microfinance-related Bill, citing Central Bank guidance as the basis for the proposed legislation. He argued that the Bill is necessary to address illegal deposit-taking, exploitative interest rates, and unethical debt recovery practices, which he attributed to weak governance in the sector. He contended that without regulatory intervention, loan recovery failures, rising costs, and financial losses would continue to threaten stability, and that the Bill is essential to protect the public and stabilise the microfinance sector.

## Summary Hon. Thilina Samarakoon spoke in support of the Microfinance and Credit Regulatory Authority Bill, arguing that Sri Lanka's microfinance sector has long operated without adequate oversight, resulting in severe harm to vulnerable communities. He cited a 2019 UN Human Rights Council session which noted that approximately 2.9 million Sri Lankans were burdened by microfinance debt — particularly in the Northern, North-Central, and North-Western Provinces — and that over 170 people had died by suicide as a result. The Bill proposes to establish a dedicated regulatory authority with licensing powers, a customer protection framework, investigative and enforcement powers, and limits on deposit-taking by microfinance institutions, addressing gaps in the Central Bank's current mandate. Samarakoon acknowledged concerns regarding the inclusion of community-based organisations such as funeral societies, and indicated that the government remains open to future amendments to address unintended consequences.