COLOMBO, Nov. 6 (Xinhua) -- The Sri Lankan government is expected to establish an independent authority to regulate microfinance institutions, State Minister of Finance Ranjith Siyambalapitiya said on Monday.
Siyambalapitiya told media that the plan has been approved by the cabinet of ministers, with the Microfinance and Credit Regulatory Authority Act expected to be passed in parliament by the end of the year.
The official said that about 11,000 microfinance institutions are operating in the South Asian country, but only five of them have registered with the government.
The state minister said that about 3 million Sri Lankans have taken loans from microfinance institutions, adding that it has become a serious problem as most debtors can not afford to pay high interest rates. ■
