Finance Houses Association launches revised Self-Regulation Code
View(s):The Finance Houses Association of Sri Lanka (FHA) the apex body of all registered finance companies, has announced the introduction of its revised Self-Regulation Code which has been voluntarily practised by member companies over a long period of time, but has to be adapted to changing times.
The revisions to the Code were effected with a view to maintain highest standards on strategic and business operations in Sri Lanka’s Non-Banking Financial and Leasing Institutions (NBFI) sector, the FHA said in a media release.
The FHA collective of 39 Licensed Finance Companies (LFCs) is the driver of financial inclusion of Sri Lanka’s MSME sector which has a large footprint in the bottom of the pyramid segment of the country. The MSME sector is the backbone of Sri Lankan economy involving over 70 per cent of businesses in Sri Lanka, providing employment for 45 per cent of the labor force and generating 52 per cent of GDP.
Titled “Code of Conduct of Licensed Finance Companies Sri Lanka” the updated instrument was handed over to the Governor of Central Bank of Sri Lanka Prof. W. D. Lakshman and bank’s officials by FHA Council members on March 18 at the Central Bank premises.
Niroshan Udage, Chairman of FHA said: “FHA’s time tested gentlemen’s agreement that was codified some time ago needed revisions and updates as per the requirements of today’s changing times. The overall objectives of updating the Code were to comply with all current regulatory and legal requirements while adhering to industry best practices. We take humble pride in the fact that the Code was not imposed on our sector by any authority but was self-introduced by all FHA members on their own will, which demonstrates the members’ strong commitment to sectoral integrity and their social responsibility.”
Members of FHA also handed over their Sustainability Mandate to Prof. Lakshman and top officials of the Bank. “The purpose of the Sustainability Mandate is to serve as the guideline for the LFCs to integrate sustainability principles holistically into their businesses, enabling sustainable value creation through their own financing approaches, in line with defined sustainability guidelines that would ultimately contribute towards national sustainability agenda and UN Sustainable Development Goals” said Chairman Niroshan Udage.”
Romani de Silva, speaking on behalf of the FHA sub-committee that overlooks Sustainability, said: “Adopting the United Nation’s Sustainable Development Goals (SDGs) would be significant to every finance company operating in Sri Lanka’s NBFI sector. The good news is that many members of FHA already subscribe to at least three SDG guidelines by default; the SDGs are ‘No Poverty’, ‘Zero Hunger’ and ‘Good Health and Well Being’ through their activities in serving customers at the base of the pyramid.”