The Hon. (Dr.) Anil Jayantha

¶ 01 Thank you very much, Hon. Leader of the Opposition.

¶ 02 Hon. Speaker, with regard to the microfinance institutions or illegal finance institutions mentioned by the Hon. Leader of the Opposition, indeed, when it comes to handling money or engaging in financial activities, these are illegal. However, they have been incorporated under the Companies Act or as legal persons. That is where the problem has arisen. Also, beyond certain legal and regulatory gaps, in some of these schemes powerful individuals, and at times political groups, have been involved and leveraged power to carry out such activities.

¶ 03 Nevertheless, we are intervening step by step, taking appropriate measures to bring these under supervision and proper procedures. We are working within the Anti-Money Laundering and Countering the Financing of Terrorism framework, together with the Central Bank. The next evaluation is scheduled for March 2026. The Financial Intelligence Unit’s work is being expedited. If there are institutions operating outside our supervision, we will bring them in. The microfinance business at village level has deteriorated badly. Only around four or five institutions are registered with the Central Bank, while thousands of illegal entities operate. With the enactment of the new law, we will take the necessary regulatory actions.

¶ 04 As for online-related offenses and finance crimes occurring in various ways, we act under the general law against the activities that account for the majority of incidents, which are fraud. While intervening against those who commit such frauds, I present another matter to the House.

¶ 05 Those involved in these frauds reap large benefits. Although our literacy rate is around 98%, financial literacy is at a very low level. Even where financial literacy exists, at times people are enticed by higher returns and fall for such schemes. We should understand that when someone offers interest of 50%, 200%, 300% above the country’s interest rates, there is fraud. The Hon. Member who spoke earlier also noted this. These are pyramid-type scams. We intend to address all these matters systematically and procedurally, step by step, under proper supervision, and bring them into a correct process, Hon. Speaker.