The Hon. (Dr.) Pathmanathan Sathiyalingam

¶ 01 Thank you, Hon. Presiding Member. We welcome the Microfinance and Credit Regulatory Authority Bill. It is much needed, especially for the North and East where microfinance caused severe harm. After the war ended in 2009, displaced people had lost their livelihoods and income. Over 40 microfinance institutions from the South came, especially targeting women-headed households, lending at high interest without conditions and later subjecting them to various harassments, including sexual harassment. Borrowers took one loan to repay another, becoming trapped and some family heads ended up committing suicide. Many such incidents have occurred.

¶ 02 This Bill is needed to protect people and regulate lenders. However, there are shortcomings. During and after the war, banking services did not fully operate or people could not access them. Villagers formed grassroots strengthening groups, pooled funds, and provided small loans among themselves. These community systems continue, especially in the North and East, and are non-profit, aimed at mutual empowerment.

¶ 03 Our concern is that this Bill lumps such small community systems under the same legal framework as big lenders. That defeats the original purpose and harms poor families and women-headed households. Some government speakers said these small entities will not be brought under this law, but the Bill classifies “moneylenders” and “microfinance institutions” broadly, bringing everyone in.

¶ 04 My advice: include a third category for community-level financial organizations, and provide suitable provisions so they can fulfil their purpose. If these are not regulated through this law, many families will benefit. As stated, 90 per cent of those to be protected are women, yet women’s representation in the Authority is minimal—perhaps only one. That is unacceptable; adequate women’s representation must be ensured. I submit a document with proposed amendments to the House.

¶ 05 While we sit here, I wondered if we are truly in the Sri Lankan Parliament. During the war, displaced people in the North and East could not return home; relatives of the disappeared still do not know where their loved ones are; the stench of war’s blood has not faded—and those involved come here and speak of humanity, war, and killings. I had to check whether we are in the Sri Lankan Parliament. Thank you.