The Chairperson of the Sectoral Oversight Committee (SOC) on Economic Development and International Relations, Attorney-at-Law Lakmali Hemachandra, MP, has proposed that the term “community-based financial institutions” be properly defined in the Microfinance and Credit Regulatory Authority Bill. Declaring that the proposed new law should not undermine the community-based financial institution, lawmaker Hemachandra has stressed the need for necessary amendments to the Bill.

According to the Office of Director Legislative Services / Director Communication, this directive has been given after the relevant SOC recently obtained views of community-based financial society representatives on the Microfinance and Credit Regulatory Authority Bill

During the meeting, representatives of community-based financial societies explained the role played by their societies and highlighted how they differ from microfinance and credit-providing institutions. They emphasised that community-based financial societies play a unique role in uplifting rural areas of Sri Lanka, including empowering women.

The representatives pointed out that the proposed Microfinance and Credit Regulatory Authority Bill seeks to bring all microfinance and credit-providing institutions under a single regulatory authority, and that this could potentially impact the role and operations of community-based financial societies.

Commenting on this matter, the Chairperson of the Committee noted that the Bill does not contain a separate definition for community-based financial institutions. She pointed out that regulating such institutions under a common set of criteria through a central authority could hinder their fundamental objectives.

Representatives of the community-based financial societies stated that while there is a strong need to subject their societies to regulation, it is important that any amendments to the Bill should not obstruct their core objectives.

After considering these views, the Chairperson proposed that the term “community-based financial institutions” be properly defined in the Microfinance and Credit Regulatory Authority Bill, and that necessary amendments be made to ensure their fundamental objectives are not adversely affected.

Accordingly, subject to these amendments, the Committee granted its approval to the Microfinance and Credit Regulatory Authority Bill. As the Bill also contains matters falling within the purview of the Committee on Public Finance, the Committee further decided to refer the Bill to that Committee for consideration.

Members of the Committee, including Members of Parliament Lakshman Nipuna Arachchi, Attorney-at-Law Nilanthi Kottahachchi, Thilina Samarakoon, and Samanmali Gunasinghe.

Government officials were also present at the meeting.

The Ilankai Tamil Arasu Kachchi (ITAK) yesterday (12) announced that it wouldn’t support the Samagi Jana Balawegaya-led no-confidence motion against Prime Minister Dr. Harini Amarasuriya over the ongoing educational reforms controversy and the inclusion of homosexual website in the Grade 06 English module.

Political sources said that the ITAK had informed the Opposition of its decision.

Sri Lanka’s power sector reform programme has reached a critical milestone, with the Initial Vesting Plan to restructure the Ceylon Electricity Board (CEB) and establish successor companies now completed and ready for Cabinet approval.

Speaking to The Island, Director General of the Power Sector Reforms Secretariat, Eng. Pubudu Niroshan Hedigallage, said the programme, launched under the Sri Lanka Electricity (Amendment) Act No. 36 of 2024, is being implemented in two phases — the Initial Vesting Plan and the Final Vesting Plan — within the Secretariat’s two-year mandate, ending on June 26, 2026.

“The Initial Vesting Plan, which details the creation of successor companies and the transfer of CEB assets, liabilities, duties and operations, has now been finalised in line with the policy directions of the Minister of Power and Energy,” he said.

Eng. Hedigallage added that the plan incorporates observations from the Attorney General and guidance from the Minister of Finance and the Secretary to the Treasury, ensuring alignment with wider fiscal consolidation and structural reform objectives.

Once Cabinet approval is obtained, the Minister in charge will gazette the appointed date on which the CEB will be legally dissolved. Prior to that, the CEB Board must complete the transfer of assets and liabilities to the new companies, which will take over electricity services and commercial operations from that date.

He said the preparatory work was completed over 15 months with voluntary contributions from Secretariat members, including himself, Institution of Engineers Sri Lanka President Eng. Kosala Kamburadeniya and Dr. Indra Mahakalanda.

Clarifying media reports on his resignation, Eng. Hedigallage said the move was a formal administrative step to ensure a smooth and speedy transfer, and did not indicate any disruption to the reform agenda.

“The reforms will advance for the benefit of employees opting for voluntary retirement, those joining the successor companies, electricity consumers, and the national economy,” he said, adding that the move also supports Sri Lanka’s ongoing IMF-backed structural adjustment programme.

By Ifham Nizam