Community Credit Groups Oppose Proposed Regulatory Bill

Community savings and credit organisations have raised strong objections to the proposed Microfinance and Credit Regulatory Authority Bill, warning that it could undermine long-standing grassroots financial systems.

At a national conference held in Colombo on January 21, representatives from over 50 community organisations argued that the Bill wrongly categorises community credit alongside moneylending and commercial microfinance. Participants said community-based systems operate on collective ownership, mutual accountability and non-profit principles.

Speakers from farming communities, war-affected regions and plantation areas highlighted how microfinance-driven debt has harmed women and households, while community savings models have helped build resilience. They warned that heavy regulation could dismantle vital local institutions and weaken women’s economic security.

Organisers called on the Government to consult directly with grassroots groups when drafting regulations, stressing that reforms should protect community initiatives rather than respond to external pressure from international financial institutions.

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