Hon. Lakshman Nipuna Arachchi

Hon. Deputy Speaker, to put it briefly regarding this Bill: the people are not in a panic; do not create panic among the people. As a Government, we are not bringing any law or regulation to oppress the people of this country. In truth, this is a people’s government. By now around 200 women in Sri Lanka who were involved with microfinance have taken their own lives. If earlier there had been proper regulation and proper guidance on microfinance, our women would not have faced that tragedy. Several governments tried, but it had not been properly done. This is not a hastily brought Bill. Even under previous governments there were inquiries and even court proceedings. We appointed a separate committee on this Bill. At that committee we discussed with the Central Bank, the Ministry of Finance, other institutions and representatives of the community-based organizations. Having considered all their views, we discussed and, as a result of those deliberations, this Bill has been presented to Parliament today. Therefore, whoever tries to frighten the public, we tell our women and all citizens with responsibility that no one will be unfairly treated by this. The Bill recommends that detailed regulations be framed for the registration of microfinance institutions. This does not end here; alongside the Act, a number of areas will be regulated. Because many sectors will come under oversight, some matters can be refined through regulations. This Bill also establishes a clear coordination mechanism between the Sri Lanka Microfinance and Credit Regulatory Authority and the Central Bank of Sri Lanka. The Central Bank cannot regulate everything itself, but the necessary coordination for regulation will be built through this law, creating a linkage with the main financial authority. Until a National Policy on community-based mobilization is developed, related matters will be handled under this law. Community-based organizations must be a component of this process. In discussions, they requested some freedom to act—since they have mechanisms to discuss and resolve issues within their communities. If the Bill poses obstacles to that, those obstacles should be removed, and the Government will attend to that. We also need a specific policy for community-based organizations. It is true the Bill may not cover everything. We must accept that. Where coverage is lacking, we should help these community-based organizations to register legally and align with a regulatory framework. This Bill does not prevent that. So do not frighten them—do not frighten the women in these CBOs. We also call upon the Opposition not to do so. This Bill is drafted appropriately. Awareness programmes will be implemented under this. Many in our country have gaps in financial literacy, especially at the village level. We are not saying they are entirely outside such activities, but guidance is necessary. The Bill contemplates that responsibility too—ensuring there is guidance on how to manage the loan funds they obtain. We must also ensure higher female representation in the Authority’s governance. A large proportion of borrowers are women, which places a special responsibility on us. People often borrow not for business investment but to escape poverty. There is a difference between a business loan and a loan taken by someone struggling to alleviate poverty. They need not just credit but also knowledge—guidance on production pathways and on how to manage the loan capital they receive. This country had been trapped in debt. As a Government, we have managed to steer the country out of that debt trap. But that is not enough; we must also lift up those at the lowest levels who suffer in poverty. These are interconnected. As we introduce production processes nationwide, that journey will necessarily support this effort. Under the “Praja Shakthi” programme we are guiding district-level proposals this year, including production proposals from community organizations. Through that district-level guidance, the women who are in difficulty and the poor will connect with these initiatives, so they do not fall again into debt traps—by guiding them on productive use of their assets and on how to get out of debt.