Microfinance institutions (MFIs) and other organizations offering microfinance products in Sri Lanka – which reportedly number in the thousands – are to be regulated under a new microfinance bill to be introduced to the Sri Lankan parliament soon.
The governor of the Central Bank of Sri Lanka, Mr Ajith Nivar Cabral, said in a statement that all organizations providing microfinance will be required to register with the authorities and conduct their business according to the new standards, which are intended to prevent waste and abuse of financial resources. The new bill would set up a dedicated authority to regulate all organizations that offer microfinance products. Currently several ministries and departments operating under various government acts control the operations of different types various of MFIs.
The 14 Sri Lankan MFIs reporting data for 2009 to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, have an aggregate loan portfolio of USD 270 million, total assets of USD 382 million and 911,000 active borrowers.
By Witt Gatchell, Research Assoicate
About Central Bank of Sri Lanka (CBSL):
Established in 1950, the Central Bank of Sri Lanka (CBSL) is the nation’s central banking authority. The core responsibilities of CBSL are to ensure the stability of the nation’s financial sector as well as the economy as a whole. The governor of CBSL is Mr. Ajith Nivard Cabraal as of 2006.
Sources and Additional Resources:
[1] The Sunday Times: “20,000 MFIs to be regulated under Micro- Finance regulations: CB Governor” http://www.sundaytimes.lk/110109/BusinessTimes/bt10.html
MicroCapital Universe Profile: Central Bank of Sri Lanka (CBSL) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cen…
Browse the MicroCapital Universe and add your entry to: https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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