Sunday, 05 July 2020 20:53

Unauthorised finance and leasing companies to be regularised

Sri Lanka is bringing laws to regulate unauthorised finance and leasing and micro-finance companies which are behaving like loan sharks giving loans to people who cannot afford them, but some regulated.

Central Bank will initiate necessary legal action against unauthorised deposit taking institutions and 27 prohibited schemes, while taking measures to broaden public awareness on the consequences of engaging in unauthorised financial activities.

The spotlight has turned onto the finance and leasing companies operating in Sri Lanka with the Government appointing a three-member commission on Wednesday to look into the function of unlicensed companies and present a report soon.

This document will no doubt be critical for the future of the sector and comes at a highly charged time head of parliamentary elections in August.

The committee is set to convene on Monday (6th July) to prepare the final report into its findings.

The Committee appointed to Probe Irregularities at Financial and Leasing Companies has received 250 complaints.

The acceptance of complaints to the committee concluded on the 30th of June.

However, according to Director of the Central Bank Legal and Compliance Department, K.G.G. Sirikumara complaints were received till Friday evening (July 4) via post.

CB reiterates the requirement for enactment of a legal framework to regulate unregulated money lending activities so that a better and more effective regulatory environment is crated for money lending institutions in the future.

Hence the need for the enactment of the proposed Microfinance and Credit Regulatory Authority Act, approved by the Monetary Board of the CBSL is vital.

(LIN)

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