National Microfinance Study of Sri Lanka: Survey of Practices and ...

In addition, it has initiated and supported the infrastructure of economically active
village based societies, facilitating the growth of a rural capital base of over SLR
733 million. Most importantly, it has provided the management and financial
skills support for this capital base to be mobilised in over 888,000 loans, worth
over 1.16 billion, to the rural people (ibid.).
SEEDS provides a ‘credit plus’ service through three integrated divisions:
The Banking Division administers the savings and credit service and supports
the village societies.
The Training Division is responsible for training the Sarvodaya society
member borrowers and officials of SEEDS’ staff and other organisations in
institutional development, enterprise development and microfinance
management.
The Enterprise Services Division provides a range of business development
services to SEEDS clients, including extension services, business
advice/counselling, product development research, marketing advice and
private sector linkages.
It has partnered with the State, the banking sector and other financial institutions
in financing the rural sector. SEEDS’ looks to form constructive partnerships and
alliances with these organisations and projects both national and international.
SEEDS’ has begun a programme to develop its Districts into ‘District Banks’.
All districts will also become Enterprise Development Centres. These will
continue the operations of the district, but as more of SEEDS operations and
activities are decentralized, the centres are becoming the focus of enterprise
development in the area.
They have discretion to grant credit, implement training programmes and
workshops and identify and request skills training modules. They also coordinate
the initial stages of market linkages and partnerships. Their focus is on
being responsive to the needs and requests of the people in the area, as well as
providing innovative linkages and technologies.
To increase the quality of services SEEDS Training Division provides, it is
establishing ‘Centres of Excellence’ at three regional offices. These centres will
specialize in developing curricula, training programmes, libraries and other
resources in the areas of management, entrepreneurship development and
institutional development.
SEEDS savings are mobilised at SSS level. There are different types of savings
products such as compulsory savings, ordinary savings, loan security savings,
children’s savings available at these societies. SEEDS beneficiaries have access to
variety of loan products. Of them loans from society savings fund and loans from
SEEDS funds are two different loan schemes.
The first type of loan is primarily issued for short-term credit needs and the
second type is for medium term investment or other needs. A beneficiary can
have two loans at a time from above two types and not more than one from one
loan type.
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