Microfinance and Credit Regulatory Authority Act 2026 · As enacted · Part XIII · Transitional Provisions
83. Interpretations
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
In this Act, unless the context otherwise requires –
“age of majority” shall have the same meaning assigned to it under the Age of Majority Ordinance (Chapter 66);
“Asian
Development
Bank”
means the
Asian
Development Bank established under section 2 of the Asian Development Bank Agreement
(Ratification) Act, No. 21 of 1966;
“associate company” shall have the meaning assigned to it under the Sri Lanka Accounting Standard (SLAS)
28 on Investment in Associates and Joint Ventures or any other similar accounting standard applicable in Sri Lanka from time to time;
“auditor” means –
an individual who being a member of the
Institute of Chartered Accountants of Sri
Lanka or of any other Institute established by law, possesses a certificate to practice as an Accountant issued by the Council of such
Institute; or
a firm of Accountants each of the resident partners of which being a member of the
Institute of Chartered Accountants of Sri
Lanka or of any other Institute established by law possesses a certificate to practice as an Accountant issued by the Council of such
Institute.
“borrower” means, a person to whom money is lent by a licencee;
“Central Bank” means, the Central Bank of Sri Lanka established under the Central Bank of Sri Lanka
Act, No. 16 of 2023;
“close relations” means, the spouse, domestic partner, children, parents and siblings by blood or adoption;
“collateral deposit” means, a savings deposit obtained as a collateral from a borrower against a lending facility granted to such borrower;
“Credit Information Bureau of Sri Lanka” means, the
Credit Information Bureau of Sri Lanka established under section 2 of the Credit Information Bureau of
Sri Lanka Act, No. 18 of 1990;
“deposit” shall have the meaning assigned to it under the
Finance Business Act, No. 42 of 2011 as may be amended from time to time;
“financial institution” shall have the same meaning assigned to it under the Central Bank of Sri Lanka
Act, No. 16 of 2023;
“financial regulatory authority” means, any body corporate established by law to regulate and supervise a specific sector of the financial system of Sri Lanka, and includes the Central Bank of Sri Lanka, the
Securities and Exchange Commission of Sri Lanka, and the Insurance Regulatory Commission of Sri
Lanka;
“holding company” shall have the same meaning assigned to it under the Companies Act, No. 07 of 2007;
“International Bank for Reconstruction and Development”
means the International Bank for Reconstruction and Development established in pursuance of agreements drawn up at the United Nations
Monetary and Financial Conference held at Bretton
Woods in New Hampshire in the United States of
America in July, 1944;
“International Development Association” means, the
International Development Association established under the Schedule of the International Development
Association Agreement Act, No. 7 of 1961;
“International
Finance
Corporation”
means, the
International Finance Corporation established under the Schedule of the International Finance
Corporation Agreement Act, No. 28 of 1978;
“key management personnel” means, a person having authority and responsibility for planning, directing and controlling the activities of any licencee directly or indirectly including any director;
“market conduct” means, the behaviour or conduct of participants of a market to carry out their business through sales, promotions, distributions, administration and similar kind of business activities;
“microfinance business” means, business of lending money at interest or in consideration of profit or loss arising from the proceeds of lending being shared between the lender and the borrower and provision of other financial services in conformity with the Schedule to this Act, to low income persons and micro enterprises with the primary objective of social empowerment while maintaining sustainability of the lender and the borrower;
“microfinance institution” means, an institution licensed by the Authority under Part V of this Act to carry on the microfinance business;
“Minister” means, the Minister to whom the Microfinance and Credit Regulatory Authority of Sri Lanka is assigned under Article 44 or 45 of the Constitution;
“microfinance non-governmental organization” means, a non-governmental organization issued with a certificate of registration by the Registrar of
Voluntary
Social
Service
Organizations under subsection (3) of section 20 of the repealed Microfinance Act, No. 6 of 2016 or a non-governmental organization issued with a licence under subsection (6) of section 32 of this
Act;
“moneylender” means, any person who carries on or advertises or announces himself or holds himself out in any way as carrying on a moneylending business whether or not he carries on any other business;
“moneylending agreement”
means, a written understanding between a licencee and a borrower which defines the terms and conditions applicable for sum of money lent by such licencee to such borrower and includes any amendment, addendum and supplement thereto;
“moneylending business” means, lending of money at interest with or without security by a moneylender to a borrower whether or not such moneylender carries on any business and shall include lending a sum of money in consideration of profit or loss arising from being shared between a moneylender and a borrower;
“office bearer” means, the president, vice president, secretary or treasurer or any other person holding a similar office or position in a society;
“Registrar of Voluntary Social Services Organizations”
means, the
Registrar of
Voluntary
Social
Services Organizations appointed under section 2 of the Voluntary Social Services Organizations
(Registration and Supervision) Act, No. 31 of 1980;
“related company” means, a company which is related to another company if –
that company is the subsidiary or holding company of the other company;
the holding company of that company is also a holding company of the other; or
that company is related to a company which is related to the other company;
“Securities and Exchange Commission of Sri Lanka”
means, the Securities and Exchange Commission of Sri Lanka established under section 4 of the
Securities and Exchange Commission of Sri Lanka
Act, No. 19 of 2021;
“significant management interest” means, the controlling power over the control and management of a microfinance institution irrespective of shareholding by a director or a member of a senior or executive management –
directly;
by general acceptance; or
through one or more of the following: -
spouse;
child or spouse of a child;
grandchild or spouse of a grandchild;
any parent; or
brother or sister and their spouses;
“society” means, a society registered under the Societies
Ordinance (Chapter 123) or a society incorporated under an Act of Parliament;
“subsidiary company” shall have the same meaning assigned to the term in the Companies Act, No. 07
of 2007;
“substantial financial interest” means –
in relation to a company, the holding of a beneficial interest by another company or an individual or his close relations whether singly or taken together in the shares thereof the paid up value of which exceeds ten per centum of the paid up capital of the company or the existence of a guarantee or indemnity for a sum not less than ten per centum of the paid up capital given by an individual or his close relations or by another company on behalf of such company; or
in relation to a partnership, the beneficial interest held therein by an individual or his close relations whether singly or taken together which represents more than ten per centum of the total capital subscribed by all partners of the partnership or the existence of a guarantee or indemnity for a sum not less than ten per centum of that capital given by an individual or the spouse, parent or child of the individual on behalf of such partnership.