Aug 24, 2012 (LBO) – Sri Lanka’s micro finance institutions will be regulated through a three tier framework where large scale entities will be brought under the direct supervision of the Central Bank, minister Keheliya Rambukwelle said. The Central Bank will set principles and standards to regulate the micro financiers.
The cabinet of ministers had approved a framework where small micro finance institutions will be supervised through approved audit firms which will help the Central bank enforce regulations.
Micro financiers falling under Commissioner of Cooperatives, Registrar of Cooperative Societies and the Commissioner of Agrarian Development will be under their purview.
Savings institutions coming under Sri Lanka’s Samurdhi Authority, an income support and livelihood development agency will be supervised by a new agency to be set up under an upcoming ‘Divineguma Act’.