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

The village institutional development is monitored through a graduation process.
Though these process a village society graduates as a self financing sustainable
village bank. There were 528 such banking units as at 31 st December 2001. Of
them 334 banks had a savings base of over SLR 500,000.
To be a long-term force towards poverty eradication and to be able to support
itself SEEDS needs to ensure the most effective and efficient delivery of its
interventions. Since its beginnings when it was heavily reliant on donor-funding,
SEEDS’ microfinance programme has evolved to become substantially selffunding.
SEEDS aspiration of self-sustainability by 2003 based on its 5 year
strategic plan is believed to be a viable and achievable goal.
SEEDS believes that it must provide its services throughout the whole country
and urgently wishes to secure funding for a North & East regional intervention. It
has recently completed a research an evaluation phase (Gant & Durrant, 2001)
and hopes to intervene later this year.
(b) Regional Level Practitioners
Agromart
Agromart was established in 1989. Agromart was the second NGO after
Sarvodaya to separate its microfinance activity and works in the seven districts of
Ampara, Galle, Hambantota, Kurunegala, Matara, Moneragala and Puttalam,
however it does not provide savings services. During the year 2000 Agromart
disbursed a total of 439 loans with a value of SLR 6,127,895.
Agromart's microfinance operation has been criticised as weak and inefficient
(Grace, 1999). Since then the organisation has received new funding streams and
has devolved its microfinance activities into a separate entity that is now called
Agromart Microfinance Foundation (Hospes et al., 2001)
Cumulatively as of the 31 st December 2000 it had disbursed a total of 2,292 loans
at a value of SLR 29,789,771 and its objective is to realise self-sustainability and
manage the microfinance component profitably. Agromart have received
approximately 2.3 million in Dutch Guilders from NOVIB between 1998 and
2001 and 3.9 million in Dutch Guilders from HIVOS during the same period.
Previously Agromart have received funding from CIDA, NORAD & USAID.
Arthacharya Foundation
The Arthacharya Foundation was founded in 1992 and commenced its savings
and credit activities in 1996. It has a strong poverty focus working only with the
poorest in villages. It is involved in other activities such as environmental work
but as an entry point for the social mobilisation and savings and credit that
follows.
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