Govt. acknowledges issue; says doing its part

The Government in its response to the UN expert’s report said it is acutely aware of the issues associated with microfinance, especially the difficulties faced by women in poor and former conflict areas.

The Government said it has implemented policy from August 2018 to provide debt relief for women in the Districts of Trincomalee, Ampara, Batticaloa, Jaffna, Mullaitivu, Kilinochchi, Vavuniya, Mannar, Kurunegala, Puttalam, Anuradhapura, and Polonnaruwa, who have availed themselves of micro-finance loans from Micro Finance Institutions (MFIs) as registered with Lanka Micro Finance Practitioners Association (LMFPA) and Finance Companies (FCs) registered with the Central Bank of Sri Lanka (CBSL). 

 “Those who have loans where the initial capital is less than or equal to Rs. 100,000 (initial capital) and outstanding for at least 3 consecutive months as at 30 June 2018 will have their debt written off under this policy,” the Government submission to the UNHRC said.

UN urges Govt. to declare moratorium on repayments of microfinance loans