2026-03-04 / Debate: Microfinance and Credit Regulatory Authority Bill - Second Reading and Committee Stage

Hon. (Dr.) Upali Pannilage - Minister of Rural Development, Social Security and Community Empowerment

2026-03-04
Public FinanceCorruption & Governance Reform

The Minister clarified that the Bill does not require re-registration of cooperatives and voluntary organisations already registered under other legal frameworks, explicitly listing several exempted categories including Provincial Council institutions, Central Bank-regulated entities, licensed pawning institutions, and those governed by the Samurdhi and Agrarian Development laws. He stated the Bill's primary aim is to address unregistered and unlicensed lending businesses that currently operate without oversight and cause harm to customers. The Minister further noted that the legislation will introduce a regulatory framework and a formal complaints mechanism — previously absent from the sector — to enable grievance resolution and bring order to the lending industry.

Sir, that is his interpretation. We state clearly that cooperatives and voluntary organizations already registered elsewhere do not have to register again under this Bill. They are excluded—such as Provincial Councils’ institutions, the Central Bank-regulated entities, licensed pawning institutions under the Pawning Act, registered cooperatives, those under Provincial statutes, the Samurdhi law, and the Agrarian Development law. This Bill is not about them. The problem we face is businesses engaging in lending without registration or licence, causing numerous issues. As a responsible Government, we must intervene to protect customers. We will also provide for regulations and a complaints mechanism—previously absent—so grievances can be examined and resolved and the sector made orderly. Thank you.