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    HomeBreakingA New Authority for Micro-Finance Institutions

    A New Authority for Micro-Finance Institutions

    Minister of State for Finance Ranjith Siyambalapitiya says that a new authority is being established to regulate micro-finance institutions.

    Currently, there are about 11000 microfinance institutions operating in the country. But only 05 of them have been registered.

    The minister mentioned that the presence of unregistered microfinance institutions implies that these institutions are being run without any control.

    The State Minister also said that about 30 lakh people who were in trouble have been organized for micro-finance activities.

    He emphasizes that since this is an international issue, registration is mandatory for all these institutions.

    The Minister said that after the registration, those institutions will be subject to the regulation and legal system of the Central Bank.

    He also mentioned that institutions and individuals who do not comply with this will be subject to a fine of 50 lakh rupees and imprisonment up to 05 years.

    These microfinance institutions mostly deal with the rural low-income people.

    The government has recognized the difficulties and oppressive situation faced by those people.

    Therefore, the minister emphasized that such a step was taken.

    The minister said this while answering a question posed by journalists while participating in the 2023 Youth Club Games Kegalle district tournament held at the Ruwanwella Public Stadium yesterday evening.

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