The Hon. Lakshman Nipuna Arachchi

¶ 01 Hon. Deputy Speaker, briefly on this Bill: the people are not alarmed, but let us not create alarm. As a Government, we are not bringing any law or regulation to oppress the people. Frankly, this is a people’s government. Nearly 200 women in Sri Lanka have taken their own lives linked to microfinance debt. If there had been proper regulation and guidance in this area earlier, our women would not have faced that tragedy. Several governments tried, but the job was not done properly.

¶ 02 This is not a hastily drafted Bill. Even under previous governments, inquiries were conducted and matters were taken to court. We appointed a dedicated committee on this Bill. We consulted the Central Bank, the Ministry of Finance, other institutions and representatives of community-based organizations. After considering all views, the Bill before Parliament today reflects those discussions. Therefore, I assure our women and citizens: we will not allow this Bill to cause injustice to anyone.

¶ 03 The Bill recommends detailed regulations for classifying microfinance institutions. This does not end here; alongside the Act, multiple related areas will be regulated. Where needed, we will further structure matters through regulations. The Bill also establishes a clear coordination mechanism between the Sri Lanka Microfinance and Credit Regulatory Authority and the Central Bank. The Central Bank cannot regulate everything alone, but this Bill creates the necessary linkage with the principal monetary authority.

¶ 04 Until a National Policy on Community-Based Microfinance is formulated, actions under this framework will proceed. Community-based organizations asked that space be preserved for their internal, trust-based problem‑solving within their communities, and that undue obstacles be removed. The Government will address this. We need a national policy for community-based organizations; the Bill may not cover 100%, and we accept that. Still, this Bill provides real answers to many pressing microfinance issues. For areas beyond its immediate coverage, we should assist community-based organizations to register legally and align with an appropriate regulatory framework. This Bill does not clamp down on them. Do not frighten people—especially the women involved in these organizations. I request the Opposition not to do so; this Bill has been prepared with necessary safeguards.

¶ 05 Public awareness programmes will also be implemented. Many lack adequate financial management knowledge, especially women in rural areas. We do not say they are entirely unaware, but guidance is needed. The Bill takes this into account, including the responsibility to act with understanding toward such groups.

¶ 06 We have rescued the country from a debt trap. But it is not enough to save the macroeconomy; we must also lift those at the lowest levels out of poverty. These are interconnected. As we introduce national production processes, this will help. Under the “Praja Shakthi” programme, district-level guidance is being provided to community organizations. Proposed production projects are coming in this year. Women facing difficulties and those in poverty will be linked with these efforts so they do not fall back into debt traps. They will be shown viable production pathways—how to utilize fallow land, how to manage loan funds, and how to avoid relapse into debt.

¶ 07 Hon. Deputy Speaker: Hon. Member, your time is up.

¶ 08 Very well, Hon. Deputy Speaker. In conclusion, this Bill will help free a large number of people suffering from poverty and provide them the guidance they need.