NBFIs call for positive reforms strengthening legal enforcement in the sector

Sri Lanka’s licenced Non-Bank Financial Institutions (NBFI’s) have called upon the authorities introduce positive reforms for the sector while strengthening legal enforcement and industry cooperation.
The Finance Houses Association of Sri Lanka (FHA) announced that it will continue to empower the nation with ethical finance practices while acting as the mediator to the non-banking financial industry since its inception in 1958, Chairman of the association Roshan Abeygoonewardena said on Wednesday.  
Addressing a media conference in Colombo, he noted that the association has played a crucial role in safeguarding the general public from corrupt practices of unregulated finance companies and contributing to the development of the non-banking finance sector of the country.
It is evident that some fraudulent acts of non-regulated finance companies have led to misconceptions about regulated finance companies and practical reforms need to be made in order to streamline the finance industry.
FHA suggests enacting the proposed Money lending and Micro financing Act to prevent lending activities unless registered under that Act.
It has also urged to set-up a special investigation unit to investigate and to enforce action on unauthorised institutions operating in the country.
The association emphasised the need of creating a healthy NBFI operating environment and introducing conducive policy standards and legal frameworks that empower people and communities while supporting the economy.
FHA acts as the apex body of 39 registered finance companies with CBSL and is the successor to the Ceylon Hire Purchase and Finance Association. The association was renamed as The Finance Houses Association of Sri Lanka (FHA) in 1986. (BS)