Understanding the new Microfinance & Credit Regulatory Authority Act By Imran Nafeer FEATURE View(s): View(s):Sri Lanka’s microfinance and moneylending sector is poised for a major transformation with the introduction of the Microfinance and Credit Regulatory Authority Act, 2025. Although the Microfinance Act No. Against this backdrop, the proposed Microfinance and Credit Regulatory Authority Act represents a long-awaited and much-needed reform. Establishing a Central Regulatory AuthorityA central feature of the Act is the establishment of the Microfinance and Credit Regulatory Authority (MCRA)—an independent body mandated to licence, supervise, investigate, and enforce compliance across moneylenders and microfinance institutions. A key reform is the new two-step licencing process for microfinance institutions (MFIs).

Source: Sunday Times December 20, 2025 23:07 UTC