2026-02-16
The Microfinance and Credit Regulatory Authority Bill was considered and approved by the Committee on Public Finance.
This took place at a meeting of the Committee held in Parliament on 10.02.2026 under the Chairmanship of Hon. Member of Parliament Dr. Harsha de Silva, with the participation of Hon. Deputy Ministers Chathuranga Abeysinghe, (Dr.) Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Hon. Members of Parliament Attorney-at-Law Rauff Hakeem and Nimal Palihena.
The Bill has been drafted with the objectives of establishing the Sri Lanka Microfinance and Credit Regulatory Authority, regulating the money lending business and microfinance business, protecting customers engaged in such businesses, repealing the Microfinance Act, No. 6 of 2016 and providing for matters connected therewith or incidental thereto.
The Chair of the Committee stated that the original draft of this Bill, which had been presented in 2024, was challenged before the Supreme Court, and that the constitutional inconsistencies identified by the Court appear to have been addressed in this new draft. The Committee expressed its appreciation for the Bill, which had been prepared after obtaining the views of all stakeholders.
Officials stated that the Authority to be established under this Bill will issue licenses to and regulate persons engaged in money lending and microfinance businesses, and that the Authority will be governed by a Board of Directors. It was further noted that no person may conduct a money lending business without a license issued by the Authority.
The Committee inquired whether online lending activities would also fall under the purview of the Authority. Officials clarified that online lending may also be carried out only by licensed entities. They further emphasized that customer protection is a primary objective of the Bill.
Discussions were also held regarding whether the Bill adequately covers the social empowerment role of community-based financial institutions, including through the introduction of relaxed regulatory fees or simplified compliance requirements. Practical operational issues and consumer protection were also identified as areas requiring further attention.
Officials noted that certain lenders, such as e-commerce operators, would not fall within the scope of this Act.
Taking into account the prevailing public mistrust and uncertainty surrounding legislative reforms, the Committee recommended that the Ministry of Finance, Planning and Economic Development implement effective communication programs to raise awareness among the public and all stakeholders. As an initial step, the Committee suggested publishing a document containing Frequently Asked Questions (FAQs).
As the Authority will be vested with statutory powers to determine maximum interest rates in both the lending and deposit sectors, the Committee advised officials to exercise such powers in a manner that preserves the nature of the various financial instruments used by microfinance institutions for savings and lending activities.
The delegation of powers to Divisional Secretariat offices was also discussed at length. Officials stated that small-scale lenders would not be required to travel to Colombo to engage with the Authority, and that limited powers relating to connected functions (such as processing applications and other routine matters) would be delegated to the Divisional Secretariat level. The Committee emphasized the need for a robust information technology system to ensure the effective and efficient implementation of this process.
Furthermore, at the same meeting, the Committee also considered and approved the Resolution published in Extraordinary Gazette No. 2464/15 under the Customs Ordinance (Chapter 235), as well as three Orders issued under the Special Commodity Levy Act.
2026-11-13
The Prevention of Foreign Terrorist Fighters Bill received the approval of the Sectoral Oversight Committee on Economic Development and International Relations.The Bill was considered and approved when the Sectoral Oversight Committee met recently in Parliament under the chairmanship of Hon. Member of Parliament (Attorney-at-Law) Lakmali Hemachandra. The Bill has been presented to give effect to United Nations Security Council Resolution 2178, adopted on 24 September 2014, which addresses the prevention and suppression of the threat posed by foreign terrorist fighters, and to provide for matters connected therewith or incidental thereto.The Bill was presented to Parliament for its First Reading on 20 October by the Minister of Foreign Affairs, Foreign Employment and Tourism.Officials explained to the Committee that legal action could be instituted in Sri Lanka under this Act in cases where an offence has been committed within or outside Sri Lanka by a Sri Lankan citizen or a citizen of another country, provided that the act in question also constitutes an offence under the law of the relevant country.Officials further informed the Committee that engaging in terrorist activities, planning or preparing such activities, participating in them, as well as providing or receiving terrorist training, have been defined as offences under the proposed Act.The officials also emphasized that these legal provisions had not been introduced on an ethnic basis or with the intention of targeting Sri Lankans residing overseas.Following an extensive discussion, the Committee approved the Bill. However, Hon. Member of Parliament Sivagnanam Shritharan, a member of the Committee, expressed his opposition to the Bill.Hon. Members of Parliament Suranga Rathnayake, Thilina Samarakoon, Wijesiri Basnayake and Sivagnanam Shritharan, among others, attended the Committee meeting. Government officials representing the Ministry of Foreign Affairs, Foreign Employment and Tourism, the Ministry of Defence, the Attorney General’s Department and the Legal Draftsman’s Department were also present.
2026-11-13
Salary anomalies arising when teachers are appointed to the Sri Lanka Principals’ Service were discussed at length at a subcommittee appointed by the Sectoral Oversight Committee on Education, Manpower and Human Capital.These matters were discussed when the subcommittee met recently under the chairmanship of Hon. Member of Parliament Sunil Rajapaksa.Representatives of trade unions of the Sri Lanka Principals’ Service and officials representing the Ministry of Education, Higher Education and Vocational Education and the Ministry of Finance, Planning and Economic Development participated in the meeting.Trade union representatives pointed out that one of the main reasons for these salary anomalies was the fact that the transition from the Teachers’ Service to the Principals’ Service was treated as a “new appointment” rather than a promotion.They further noted that the situation was exacerbated by the significant difference in salary increments when teachers in Grade I of the Teachers’ Service are appointed to Grade III of the Principals’ Service.They also pointed out that although an adjustment allowance had been granted to compensate for the salary difference arising from the appointment to the Principals’ Service, a further salary disparity emerges over time. This is because officers do not receive the higher salary increments, they would have been entitled to had they remained in the Teachers’ Service.It was further emphasized that this situation has discouraged senior and experienced teachers serving in Grades I and II-I of the Teachers’ Service from sitting for the Principals’ Service examination and joining the Principals’ Service.The Chairman of the Subcommittee stated that, having considered the matters presented to the Committee, steps would be taken to submit the relevant recommendations to the Salaries and Pensions Commission for Public Officers.In addition, the Subcommittee decided to hold discussions with the Ministry of Education, Higher Education and Vocational Education, the Ministry of Finance, Planning and Economic Development, and the Director General of Establishments to address other issues faced by officers serving in the Principals’ Service.Hon. Members of Parliament Abubakar Athambawa, Sugath Wasantha de Silva and Chanaka Madugoda also attended the meeting.
2026-11-12
The Sectoral Oversight Committee on Education, Manpower and Human Capital discussed the operations of state institutions under the education, higher education and vocational education sectors, the progress of development projects, existing challenges and future plans. The Committee met recently (Nov. 06) at Parliament under the chairmanship of Hon. Member of Parliament, Attorney-at-Law Hesha Withanage Ankubura Arachchi. During the meeting, the financial and physical progress of the budgetary allocations made to the Ministry of Education, Higher Education and Vocational Education for 2026 was reviewed.Discussions focused on the development of school buildings and infrastructure, education reforms, the printing and distribution of textbooks, student welfare programmes and progress in teacher education. Delays in procurement and the shortage of technical officers encountered in implementing the relevant development projects were also discussed.Officials also briefed the Committee on the performance of the Department of Examinations of Sri Lanka and the Department of Educational Publications, including the conduct of examinations and plans for the production and distribution of textbooks. The importance of providing necessary educational facilities for children with special needs was also emphasized.Furthermore, discussions were held on the distribution of school uniforms and the payment of student allowances under school welfare programmes. Officials also informed the Committee about the introduction of a new computerized system to expedite the payment of student allowances and the arrangements being made to transfer the funds directly to students' bank accounts.The operations and development plans of institutions in the higher education and vocational training sectors were also reviewed. These included universities, the Tertiary and Vocational Education Commission of Sri Lanka, the National Apprentice and Industrial Training Authority (NAITA), and the Ceylon-German Technical Training Institute (CGTTI).During the meeting, the Committee Chairman instructed all relevant institutions to submit comprehensive reports on their financial and physical progress to the Committee. He also emphasized the importance of submitting these reports within the stipulated timeframes.The Committee further decided to summon the relevant institutions not only at the end of each year but also midway through the year to review the progress of development activities.In addition, the financial and physical progress of the budgetary allocations made to the Ministry of Youth Affairs and Sports and the institutions functioning under it for 2026 was also reviewed.Members of the Committee, Secretaries to the Ministries of Education, Higher Education and Vocational Education, and Youth Affairs and Sports, along with a number of other officials, attended the meeting.
2026-11-12
The Sectoral Oversight Committee on Science, Technology and Digital Transformation focused on several key issues, including the introduction of regulations and standards for electric vehicles and their battery technology, improving the performance of state research institutions, and commercializing innovations.At a recent meeting of the Committee, held in Parliament recently under the chairmanship of Hon. Member of Parliament Dr. Janaka Senarathna, the following reports were considered: the Annual Report of the Sri Lanka National Engineering Research and Development Centre (NERDC) for 2022; the Annual Report of the National Science and Technology Commission for 2023; the Annual Report of the Sri Lanka Inventors Commission for 2024; and the Annual Performance Report of the Ministry of Science and Technology for 2025.Discussions focused on the electric vehicle and battery testing facilities available at the Sri Lanka National Engineering Research and Development Centre (NERDC). It was revealed that the institution has the capacity to test a range of battery parameters, including capacity, durability and lifespan.However, attention was also drawn to issues arising from the absence of mandatory regulations and standards governing electric vehicles, batteries, controllers and charging stations imported into the country. Accordingly, officials stressed to the Committee the need to establish relevant standards and make testing and certification compulsory.The Committee also discussed the technology involved in converting fuel vehicles into electric vehicles, the need for training programmes, and the development of standards and regulatory mechanisms to ensure the safety of such vehicles.Attention was further drawn to the shortage of human resources in research and development institutions and the need for appropriate salary and allowance schemes to attract and retain qualified engineers and researchers. Officials also highlighted the importance of improving the performance of state research institutions, addressing existing shortcomings, effectively managing research outcomes, and consolidating institutions carrying out similar functions.The Committee also discussed the Sri Lanka Inventors Commission's electric fencing projects aimed at mitigating the threat posed by wild elephants, the establishment of incubation centres affiliated with universities, and plans to promote innovation through digital platforms. Officials informed the Committee that three of the four electric fencing projects implemented to date were operating successfully.Furthermore, discussions were held on a proposal to amend the Intellectual Property Act to introduce a ‘Petty Patent system’, with the aim of protecting the intellectual property rights of inventors and expediting the commercialization of inventions.Hon. Members of Parliament Lasith Bashana Gamage, Chathura Galappaththi, Thanura Dissanayake, Attorney-at-Law Hasara Liyanage and Chandima Hettiarachchi, along with a number of officials from the Ministry of Science and Technology, attended the meeting.
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