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srilawsby aturio
As enacted
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Part VI · Regulation of Moneylenders and microfinance institutions

34. Regulatory approval

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

A person carrying on a moneylending business or microfinance business (hereinafter referred to as the

“licencee”) shall not –

(a)

open any new place of business;

(b)

outsource its debt collection function, including collection of debt through factoring or similar arrangement;

(c)

in the case of a company –

(i)

establish a subsidiary;

(ii)

amend its Articles of Association;

(iii)

appoint new members to the board of directors; or

(iv)

reduce its capital;

(d)

in the case of a society, change the office bearers;

or

(e)

in the case of a partnership, change a partner, without the prior approval of the Director-General.

(2)

Any licencee who fails to obtain the prior approval of the Director-General as required under subsection (1), may be required to pay a sum of money as an administrative charge, as may be determined by the Authority not exceeding rupees two million.

(3)

The Director-General may issue directions to a licencee, if considered necessary, when granting approval under subsection (1).

Read on from s 35

Part VII

Examination of A Licencee

Read on from Part VII

Part VIII

Customer Protection

Read on from Part VIII

Part IX

Investigation of Offences

Read on from Part IX

Part X

Offences and Penalties

Read on from Part X

Part XI

Finance

Read on from Part XI

Part XII

General

Read on from Part XII

Part XIII

Transitional Provisions

Read on from Part XIII

Schedules