SOC focuses on interest caps and stricter rules as Microfinance Bill enters final stages

The Sectoral Oversight Committee (SOC) on Economic Development and International Relations has accelerated efforts to finalise the Microfinance and Credit Regulatory Authority Bill, which aims to provide a comprehensive overhaul of the industry and protect vulnerable borrowers from predatory practices.

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During a recent meeting in parliament under the chairmanship of MP Lakmali Hemachandra, the committee reviewed critical amendments to the legislation, which was first presented for its first reading on November 26, 2025.

The proposed law seeks to repeal the existing Microfinance Act, No. 6 of 2016, and establish the Microfinance and Credit Regulatory Authority of Sri Lanka to oversee both microfinance institutions and the previously unregulated money lending business.