Sri Lanka to extend credit information service providers

Feb 22, 2017 (LBO) – Sri Lanka’s cabinet nod has been received to gazette and submit the final draft of the Credit Information Service Providers Act to Parliament.

Finance Ministry has developed this law realizing the positive contribution the private credit information providers could make to a market economy.

The need of credit information has grown extensively to areas of finance and business and to other institutions dealing with finance and credit at the macro level as well as at the micro levels.

Private entities of many other countries are already permitted to provide credit information to identified entities capturing a wider range of users who benefit by accurate and complete information enabling them to take informed decisions.

The quality of the credit information available to the credit provider reduces the cost of credit which in turn can be passed on to the consumer.

At present, these services are provided only by the licensed commercial banks through a system of voluntary membership in the Credit Information Bureau.

This Bureau is currently the only a authority empowered to access and provide credit information to lending institutions who are the shareholders of the bureau and simultaneously to borrowers and prospective borrowers in Sri Lanka.

The Bureau accesses information only from licensed commercial banks and provides information only to such banks.