Microfinance and Credit Regulatory Authority Act 2026 · As enacted · Part V · Microfinance Business
32. Licensed persons to carry on the Microfinance business
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
No person, other than a person licensed to carry on the microfinance business under this Act shall carry on the microfinance business.
Any person who carries on or advertises or announces himself or holds himself out in any way as carrying on the microfinance business without a valid licence, commits an offence under this Act.
A person shall not be eligible to be licensed as a microfinance institution unless such person is a licensed moneylender under this Act, and such person shall be either-
a company registered under the Companies
Act, No. 07 of 2007, and such company is not a company limited by guarantee, a private company, an offshore company or an overseas company within the meaning of the Companies
Act, No. 07 of 2007; or
a non-government a organization registered under the
Voluntary
Social
Service
Organizations (Registration and Supervision)
Act, No. 31 of 1980 and registered as a company limited by guarantee under the Companies Act,
No. 07 of 2007.
A person as specified in subsection (3) may apply for a licence to carry on a microfinance business, which shall be made in writing to the Director-General in such form, and accompanied by such documents or information as may be set out in rules made in that behalf.
Subsections (3), (4) and (5) of section 22 and subsection (1) of section 27 shall mutatis mutandis apply to and in respect of processing the application made under subsection (4).
The Authority may having considered the reasons set out by the Director-General on the past conduct of the applicant during the period of carrying on the moneylending business, the matters set out in subsection (1) of section 27
of this Act and any such other matters which in its opinion merit inquiry may –
issue a licence to the applicant to carry on a microfinance business, subject to such terms and conditions as the Authority may think fit; or
reject the application, subject to the provisions of section 27 as the Authority may think fit.
A licence shall be issued for a period of three years, at any time during the duration of a licence, the Authority may, add to, revoke or vary any of the conditions of the licence.
Upon a licence to carry on a microfinance business being issued to a moneylender, the licence granted to such moneylender to carry on a moneylending business under subsection (1) of section 23 shall be deemed cancelled and such moneylender shall –
immediately surrender to the Authority the licence granted by the Authority to carry on a moneylending business, and shall not display such licence or a copy thereof at any of its places of business; and
at all times display the licence issued under subsection (6), in a conspicuous place at the principal place of business and a copy of such licence at all other places of business.
Provisions of section 24, paragraphs (a), (b), (d) and (e) of section 25, section 26, section 27, section 28, section 29 and section 30 shall mutatis mutandis apply to and in respect of a licensed microfinance institution referred to in subsection (3) (hereinafter referred to as a “microfinance institution”):
Provided that, a licence shall be issued for a period of three years.
A microfinance institution may carry on such forms of business as set out in the Schedule to this Act, subject to such conditions as may be imposed under this Act or under any other written law or specified in the licence issued to such licensed microfinance institution.
Provisions of the –
Regulation of the Insurance Industry Act,
No. 43 of 2000, only for the purpose of providing microcredit insurance to borrowers; and
Finance Leasing Act, No. 56 of 2000, only for the purpose of providing micro-leasing facilities to borrowers, shall not apply to a microfinance institution, and a microfinance institution shall carry on such business, subject to such directives as may be issued by the Authority for the purpose.
Part VI
Regulation of Moneylenders and microfinance institutions
Part VII
Examination of A Licencee
Part VIII
Customer Protection
Part IX
Investigation of Offences
Part X
Offences and Penalties
Part XI
Finance
Part XII
General
Part XIII