Central Bank Seeks Feedback on Tough New Finance Rules

Sri Lanka’s Central Bank has released sweeping amendments to the Finance Business Act for public consultation, marking a major step toward restructuring the country’s troubled non-bank financial sector. The reforms, open for comment until 30 November 2025, aim to tighten supervision, raise capital standards, and stop illegal deposit-taking. They also give the regulator new powers to restructure or close failing institutions before they threaten systemic stability.

Analysts say the changes are essential after repeated finance-company failures eroded public confidence, but smaller firms warn that higher compliance costs could force consolidation and limit credit access for SMEs. Industry bodies have asked for more time to study the proposals. Economists argue that balanced implementation will be key to restoring trust while ensuring businesses especially in rural and under-banked areascan still access finance.

Spread the love
Tags:

Leave A Comment