Many factors contribute to the fact that microfinance in Sri Lanka is now highly debated in public.
The microfinance sector in Sri Lanka consists of a diverse range of institutions which do not fall under the purview of a single authority and there is currently no single and up- to-date database on these institutions.In order to obtain a comprehensive picture of microfinance institutions (MFIs) in Sri Lanka by identifying all institutions engaged in microfinance activities at a significant level, a countrywide survey was commissioned by GTZ-Pro Mi S.A voice for practitioners and promoters from the sector who explain how these principles can be seen in the local, regional and international contexts.A picture of the Sri Lankan microfinance sector, which is on the threshold of a major transformation.Finally, the report provides a comprehensive list of recommendations to regulators, policy makers and the Lanka Micro Finance Practitioners Association (LMFPA) on possible practical solutions and remedial measures that need to be taken to rectify the gray areas with regard to deposit taking activity of MFIs.
This Brochure is an attempt to provide a common understanding of the principles of microfinance endorsed by the Consultative Group to Assist the Poor (CGAP).
This confirms the underlying hypothesis that different institutional settings such as lending methodology or target group focus are factors that influence impact.
The most significant impact is observed for the two NGO-MFIs that focus their operations on women and relatively poor income segment clients.
The document is available in English, Sinhala & Tamil languages under: English Version : Version: Version : many in the Microfinance industry, while financial growth and sustainability is important, it is equally important that poor and very poor people are reached, that quality services are provided, and that microfinance eventually improves client lives.
In other words, both financial performance and social performance matter.
It seeks to provide a broad overview of the sector covering all aspects from the supply of and demand for microfinance to regulatory and policy issues, donor support for the sector, meso level support and key challenges faced by the sector.