Regulatory Alerts2022-06-10 | Letter to CEOs of LMFCsMaximum Interest Rate on Microfinance Loans granted by LMFCs
The Central Bank of Sri Lanka revoked the 2019 Microfinance Act Direction regarding maximum interest rates for Licensed Micro Finance Companies. The regulator established a specific definition for microfinance loans, limiting them to unsecured facilities of up to Rs. 250,000 for income generation or essential consumption. The Department of Supervision of Non-Bank Financial Institutions is mandated to monitor lending and enforce actions against exorbitant interest rates.
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