Micro financing is a common search phrase, while Sri Lankan law and Central Bank publications generally use the single word microfinance. The concept is not simply “a small online loan”. In Sri Lanka, licensed microfinance companies are a specific regulated category, and the legal framework also recognises other types of microfinance activity.
This guide focuses on what can be verified from the Central Bank of Sri Lanka: the licensed-company list, 2025 sector data, the current licensing framework, a 2022 monitoring definition for microfinance loans and the consumer-protection process.
What does micro financing mean in Sri Lanka?
The Microfinance Act No. 6 of 2016 created the earlier licensing framework for licensed microfinance companies. Sri Lanka then enacted the Microfinance and Credit Regulatory Authority Act, No. 9 of 2026. Parliament states that the new Act came into force on 20 March 2026, establishes a new authority to regulate moneylending and microfinance business, provides customer protection and repeals the 2016 Act. Because official web pages can be updated on different schedules during a regulatory transition, this guide dates every register it uses and points readers to the current authority/regulator source rather than treating an older FAQ as the final word.
This is why a “micro finance company”, a finance company and an online lender should not be treated as interchangeable labels. They can fall under different legal categories and may be supervised under different rules.
Licensed microfinance companies in Sri Lanka
The CBSL licensed microfinance companies register is dated 28 May 2025 and lists four companies. The table below uses the legal names and head-office locations shown by CBSL.
| No. | Licensed microfinance company | Head-office location | Website listed by CBSL |
|---|---|---|---|
| 1 | Berendina Micro Investments Company Limited | Nawala | Official website |
| 2 | Lak Jaya Micro Finance Limited | Pannipitiya | Official website |
| 3 | Dumbara Micro Credit Limited | Mirigama | Official website |
| 4 | Sejaya Micro Credit Limited | Nugegoda | Official website |
Because registers can change, use the current CBSL page rather than assuming that a company remains licensed because it appeared in an older article or advertisement.
Microfinance sector data: 2025
The CBSL Annual Economic Review 2025 provides a compact set of numbers for the licensed microfinance companies sector.
| Metric | End 2025 | Change / context |
|---|---|---|
| Licensed companies in the sector | 4 | Same number as the current CBSL register used in this guide |
| Total assets | Rs. 19.2 bn | +29.8% y-o-y |
| Micro loans | Rs. 13.3 bn | +22.8% y-o-y; 69.3% of total assets |
| Deposit base | Rs. 1.7 bn | Up from Rs. 1.1 bn; +51.7% |
| Core capital | Rs. 4.0 bn | CBSL reported all LMFCs compliant with minimum prudential core-capital requirements |
These are sector totals. They do not tell you the interest rate, approval probability or loan amount that an individual customer will receive from a particular company.
Microfinance company vs finance company vs online lender
| Type | Regulatory meaning | Practical point |
|---|---|---|
| Licensed microfinance company | A company appearing on the published CBSL LMFC register; Sri Lanka enacted a new Microfinance and Credit Regulatory Authority framework in March 2026. | Check the dated CBSL register and current information from the competent authority. |
| Licensed finance company | A separate non-bank financial institution category regulated under the finance-company framework. | Use the separate CBSL finance-company register; see our finance companies guide. |
| Online lender | A description of a digital borrowing service, not a standalone licence category shown on the CBSL authorised-institution lists. | Verify the legal company behind the website and its actual regulatory status. |
| Comparison service | May compare or refer users to third-party lenders rather than lend directly. | Check who makes the final credit decision and who appears in the loan agreement. |
Is Rs. 250,000 the maximum microfinance loan?
No single number should be copied from an old document and presented as a universal current product cap. In a CBSL letter dated 10 June 2022, the Central Bank revoked the 2019 direction that had set a maximum rate of interest on microfinance loans. For monitoring after that change, the letter defined microfinance loans as certain unsecured loans not exceeding Rs. 250,000, granted as group or individual loans for specified purposes.
The Rs. 250,000 threshold in that letter is therefore important context, but it is part of a regulatory monitoring definition. It should not be presented as a promise that every licensed microfinance company offers Rs. 250,000, or as proof that no microfinance-related product can ever sit outside that amount.
What happened to the old maximum interest rate?
The same 2022 CBSL letter explicitly revoked the 2019 maximum-interest-rate direction for licensed microfinance companies. CBSL said microfinance lending would be monitored and that action could be taken under relevant legal provisions if exorbitant rates were charged.
The current CBSL directions and guidelines page for microfinance still lists that 2022 letter alongside later regulatory material, including a 2025 direction on credit risk management. The practical lesson for a borrower is not to rely on an old historic cap: check the current rate, fees, repayment schedule and total amount payable in the actual agreement.
What changed in 2026?
Parliament’s announcement says the Microfinance and Credit Regulatory Authority Bill passed on 4 March 2026 and came into force on 20 March 2026 as Act No. 9 of 2026. The legislation establishes the Microfinance and Credit Regulatory Authority of Sri Lanka to regulate moneylending and microfinance business and to protect customers, while repealing the Microfinance Act No. 6 of 2016.
This matters for older web guidance. A statement written under the 2016 Act may still be useful historical context, but it should not be presented as the complete current licensing rule after March 2026. Consumers should check the current authority/regulator information for the legal status of a specific business.
What to check before taking a micro finance loan
- Legal entity: identify the company that will appear in the agreement, not only the app or website brand.
- Licence category: if the business claims to be a licensed microfinance company, match its legal name to the CBSL register.
- Loan purpose and amount: confirm that the product you are considering is actually offered by that company and not by a third party.
- Total repayment: compare interest, service fees and every mandatory charge, not only a daily or monthly headline rate.
- Repayment frequency: weekly, monthly or other schedules affect cash flow differently even when the borrowed amount is similar.
- Late-payment rules: read what happens after a missed payment, including fees, collection procedures and restructuring options.
- Data and contact permissions: for digital applications, check what personal data and phone permissions are requested.
Micro financing and online loans are not the same thing
An online loan describes the way a borrower researches or applies for credit. Microfinance describes a financial-sector activity and, in the regulated LMFC context, a specific licensing category. A licensed microfinance company can use digital channels, but an online lender does not become a microfinance company simply because its loans are small or short term.
If your goal is to compare digital borrowing services rather than identify a licensed microfinance company, use the Loan24 online lenders directory and check the legal role described on each profile.
Consumer protection and complaints
CBSL introduced Financial Consumer Protection Regulations for regulated financial service providers and launched an online Complaint Management System in May 2026. The current process asks consumers to submit a complaint to the relevant financial service provider first. If the matter remains unresolved or the response is unsatisfactory, a complaint can be escalated to CBSL where the entity and issue fall within its scope.
See the CBSL Financial Consumer Protection Regulations overview and CBSL Complaint Management System announcement for current details.
Frequently asked questions
Sources and methodology
- CBSL — licensed microfinance companies (as at 28 May 2025)
- CBSL — Annual Economic Review 2025, licensed microfinance companies sector
- CBSL — finance and leasing companies FAQs
- CBSL — 10 June 2022 letter on maximum interest rate and monitoring definition
- CBSL — directions, circulars and guidelines on microfinance
- CBSL — Financial Consumer Protection Regulations
- CBSL — Complaint Management System for financial consumers
Loan24 editorial note: statistics and licence lists are dated to the source period. Loan24 does not classify a service as an LMFC unless that legal entity appears on the relevant official register.