Fitch regulatory agency warns that the increased exposure to microfinance at Sri Lankan non - bank financial institutions ( NBFIs ) could pose a threat to their credit profiles ; exposure has risen from 4 % in March 2014 to 27 % in December 2015 . Fitch is concerned that lending to this segment is more susceptible to high - quality degradation during periods of economic stress . Furthermore , Sri Lanka lacks a comprehensive regulatory and supervisory system for the microfinance sector , meaning that many of the large numbers of companies engaged in the provision of micro - finance are unregulated .
Fitch ratings agency warns that the increased exposure to microfinance at Sri Lankan non-bank financial institutions (NBFIs) could pose a risk to their credit profiles; exposure has risen from 4% in March 2014 to 27% in December 2015. Fitch is concerned that lending to this segment is more susceptible to asset-quality deterioration during periods of economic stress. Furthermore, Sri Lanka lacks a comprehensive regulatory and supervisory system for the microfinance sector, meaning that many of the large number of companies engaged in the provision of micro-finance are unregulated.