Civil society organisations demanded the withdrawal of the proposed Microfinance and Credit Regulatory Authority Bill claiming that the Bill would not comply with the objectives expected by the victims of the microfinance institutions and would instead have an adverse effect on the community organisations in remote areas.

Staging a protest yesterday (17) in front of the Colombo Fort Railway Station, the civil society activists who spoke to the media said that the proposed Bill would not be fruitful as they expected since it would harm the minor community organisations in villages such as women’s welfare organisations, funeral welfare societies, etc. They also alleged that the leading companies that engage in microfinancing would not be properly regulated by the proposed Bill.

The protestors said that the Ministry of Finance, Economic Stabilisation, and National Policies should have been much more focused on regulating the leading companies which engage in their business in villages instead of making laws to cripple the community organisations which help the rural communities in many ways. They claimed that it would not be possible to carry out the welfare organisations and other minor organisations which have been established for the benefit of rural communities if the said Legislation is enacted by the Government.

Accordingly, civil society organisations including the Organisation of Victims of Microfinance Scams demanded the withdrawal of the said Bill and urged the Government to make a suitable legal framework to regulate the companies that engage in similar businesses in different forms.

Many parties have been raising concerns over the scams related to microfinance organisations and urging the Government to bring forward necessary legislation to regulate microfinance institutions. Recently, the leader of the Sri Lankan indigenous community (the Veddas), Uruwarige Vannilaaththo also urged President and Minister of Finance Ranil Wickremesinghe to take immediate action against microfinance institutions that have misled hundreds of people with the provision of high-interest loans.

Several attempts made by The Daily Morning to contact State Minister of Finance Ranjith Siyambalapitiya proved futile.