Sri Lanka’s new laws on licensing, regulating and supervision of companies carrying out microfinance business have come into effect with the gazetting of the new Act.
Premier Ranil Wickremesinghe, in his capacity as Minister of National Policy and Economic Affairs, has by order, published in the Gazette of July 11, brought into operation the Micro Finance Act no. 6 of 2016.
“This is a historical occasion, as the Micro Finance industry, which serves a large section of the people, mainly female, at the bottom of the economic pyramid, has not been under any sort of prudential regulation,” the PM’s Office said in a press release today (14).
This has given an ‘open season’ to Pyramid Scheme racketeers such as the infamous, Sakvithi, Danduwan Mudalali and many others, it said.