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

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District Unions - National Federation District Unions function to mobilise excess savings from the primary societies and then on-lend this to other societies that require credit funding. Prior to the initiation of the SANASA Development Banks in 1997 the Federation used to fund the District Unions in a similar manner, since this time the importance and role of SANASA District Unions have been reduced since the formation of the SANASA Development Bank as the following figures show: Table 39 SANASA District Unions –Progress 1999/2000 Activity 1999 (SLR) 2000 (SLR) Savings Fixed Assets Loans Granted Loans O/S at 31 st Dec Loans Past Due at 31 st Dec 958 m 153.5 m 343.8 m 947.8 m 345.2 m 801 m 97.8 m 223.4 m 726.32 m 216.03 m Source: SANASA Statistical Report 2000 ____________________________ Three District Unions have been funded by USAID in the past five years with a sum of USD 810,000. HIVOS has funded the federation as a whole during the period 1998-2001 with some 2.6 million Dutch Guilders. Cumulatively it is known that that SANASA have received some SLR 330 million from eight funding organisations including HIVOS and the Swiss. The SANASA Development Bank (SDB) The SDB was set up in 1997 as a specialized bank with the primary societies and the district unions having the majority shareholding. The SDB provides loans direct to qualified primary societies and had 10 operating branches at the end of 2000. The societies are now categorized into 3 grades based on savings and management criteria with Grade 1 societies qualifying for loans from the bank. SANASA has a training centre that in the main provides training for its own staff and client organisations staff and volunteers giving training in social mobilisation, capacity building and the management of financial accounts at the society level. In the year ended 31 st Dec 2000 the Banks savings and loans performance was as follows:
Table 40 SANASA Loans by Sector Sector 1999 (SLR Ms) 2000 (SLR Ms) Agriculture 6 4 Animal Husbandry 1 0 Fisheries 1 0 Small Industries 92 10 Business 117 139 Housing and related 23 14 Others 85 220 Total 325 387 Source: CBSL (2001) ___________________________ The TCCS have grown steadily since 1978. This is probably in part due to the dynamic leadership of the movement. However the two key institutions, namely, the district unions and the primary societies, appear to suffer from serious accounting and management shortcomings. This is possibly due to the volunteer nature of the staff and lack of direction from the top. Many of the TCCS societies are no longer functioning. Although the actual rate of collapse of primary societies has not been accurately defined it is considered high. Of the 8,424 registered primary societies some 50% of them have not been audited for a number of years. Both the district unions and national federation appear to allow managerial independence at the society level that may have led to weaknesses in the structures and systems. Quite a number of the district societies themselves are not viable and 9 district societies did not repay loans taken from the Jansaviya Trust and have as a result been black listed by them. In terms of improving the viability of primary societies USAID supported one project with technical assistance from World Council for Credit Unions (WOCCU) that worked with 72 societies from1998 to 2001. This project was followed by a HIVOS supported project that is focused on strengthening 1,250 societies by the end of Dec 2002. These two projects will help to develop models and practices that could be replicated through all the societies utilising the SANASA Education and Training Centre. It is believed that donor support to revitalize the entire primary society network as well as the apex organisation could assist in moving the societies towards sustainability. The excellent leadership that made the past expansion possible needs to be followed through in management and financial practice to consolidate the growth and ensure the sustainability of the movement as a whole.
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National Microfinance Study of Sri
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(b) Lenders .......................
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Introduction into the pawning busin
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Microfinance Overview .............
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Savings ...........................
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List of Tables Table 1 Microfinance
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Table 70 Ratnapura District Microfi
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JBIC MFI MFN MIS MPCS MSME NCPPDP N
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Figure 1 Map of per Capita Value of
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Figure 3 Map of per Capita Value of
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Executive Summary This report provi
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Practitioner Microfinance Activity
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As a result the banks are moving aw
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The operating conditions of the con
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Donor Strategies There should be a
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Introduction to the Study The objec
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The survey does not claim to repres
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Introduction Socio-Economic Overvie
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These five years saw a spate of new
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The 'Economic Stream' Employment is
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Microfinance Clients and Beneficiar
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1. Funders of Microfinance in Sri L
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CIDA believes that microfinance act
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The Department For International De
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NOVIB Partnerships tend to be long
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HIVOS The HIVOS Desk concentrates o
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Over time SIDA noted that the loan
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Comment freely given from one of th
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the time period of the project, wit
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Only a very small part of the US 50
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The demand for loans from this fund
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Without permanent access to institu
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This broad strategy means that the
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Beneficiary targeting was generally
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The FCSs were developed the followi
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CARE's new strategy commits the org
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Each CBO determines the level of in
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The project’s overall approach re
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Figure 6 GTZ/JRP - Project Interact
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The Social Development Foundation F
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There are no sector-based quotas ap
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Over the past five years SCN has as
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UNDP in the North & East - The Jaff
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In December 2001 a new UNDP Program
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From previous experience and lesson
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World Vision Lanka WVL believes tha
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Membership Development 3500 3000 25
Page 96 and 97: Table 14 World Vision - Gramashakth
Page 98 and 99: ZOA works with community groups in
Page 100 and 101: At the village society and bank lev
Page 102 and 103: In Wayamba the sustainability of th
Page 104 and 105: Table 15 Badulla IRDP - Summary Dat
Page 106 and 107: DZPDP/WHRDA credit operations comme
Page 108 and 109: In the initial years they did not f
Page 110 and 111: Table 18 SPRDP- Loans 1993 to 1999
Page 112 and 113: (c)Lender-Practitioners The Central
Page 114 and 115: Society members have access to cred
Page 116 and 117: The RDBs were re-structured in 1998
Page 118 and 119: Table 25 Value of Loans Disbursed b
Page 120 and 121: The total savings and credit issued
Page 122 and 123: Table 29 Samurdhi - Loans by Distri
Page 124 and 125: In 1998 SEEDS converted to a separa
Page 126 and 127: Within the loans from SEEDS funds t
Page 128 and 129: The Arthacharya Foundation practice
Page 130 and 131: The program was assisted by some li
Page 132 and 133: However in general the majority of
Page 134 and 135: Table 33 Growth of MPCS CRBs -1990
Page 136 and 137: As at the end of December, 2000 a s
Page 138 and 139: Some 1,176 of the 1,476 Co-operativ
Page 140 and 141: A total of 74 NGOs were identified
Page 142 and 143: Finally only a small proportion of
Page 144 and 145: Table 38 TCCS Active Societies and
Page 148 and 149: 4. Facilitators a) National Level F
Page 150 and 151: International Centre for the Traini
Page 152 and 153: Funder-Practitioner Microfinance Ac
Page 154 and 155: As practitioner experience increase
Page 156 and 157: Introduction and Approach The major
Page 158 and 159: State-Owned Banks The Bank of Ceylo
Page 160 and 161: Starting in 1994, the NCRCS is aime
Page 162 and 163: The Seylan Bank The Seylan Bank ent
Page 164 and 165: Figure 9 Linking of the RBIP Tools
Page 166 and 167: People's Fast reduces loan processi
Page 168 and 169: In addition, RBIP monitors the impl
Page 170 and 171: The Hatton National Bank Case Study
Page 172 and 173: Seylan Bank Case Study The Seylan B
Page 174 and 175: Until 1961 private pawnbrokers were
Page 176 and 177: Bank officials stated that PSC staf
Page 178 and 179: The urban PSCs have on average more
Page 180 and 181: The lack of flexibility has induced
Page 182 and 183: From the borrowers perspective not
Page 184 and 185: The Peoples Bank, on the other hand
Page 186 and 187: Introduction and Approach Internati
Page 188 and 189: Displaced populations are dependent
Page 190 and 191: Large tracts of land have become to
Page 192 and 193: Public markets, shops, guest houses
Page 194 and 195: The previous thriving local economy
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The Wanni Access to the area known
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Remembering that these intervention
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This type of situation is seen thro
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People IDPs in welfare centres, sho
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World Vision has been working in al
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small entrepreneurs have received t
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The exception to this is a governme
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There has been some continued acces
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Introduction and Approach A distric
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The MPCSs were equally disrupted an
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The main body of the survey is pres
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Local NGOs 11 NGOs were identified
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Local NGOs 1 NGO was identified in
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Local NGOs 1 NGO was identified in
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Local NGOs 2 NGOs were identified i
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Local NGOs No NGOs were identified
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Gampaha District Microfinance Overv
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Hambantota District Microfinance Ov
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Jaffna District Microfinance Overvi
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Staring in 1998 each DS received SL
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Matale District Microfinance Overvi
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Matara District Microfinance Overvi
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Moneragala District Microfinance Ov
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Nuwara Eliya District Microfinance
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Polonnaruwa District Microfinance O
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Puttalam District Microfinance Over
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Ratnapura District Microfinance Ove
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Trincomalee District Microfinance O
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Vavuniya district Microfinance Over
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The Wanni Area Microfinance Overvie
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Summary Microfinance Activity by Ac
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The NGO questionnaire survey identi
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World Vision Lanka works in 5 distr
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Given that these figures do not inc
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Overall, 13 of districts had levels
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Averages Value of Loans Table 78 Av
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Volume and Number of Loans The surv
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Findings The key and main findings
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Service Providers The service provi
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those incapacitated by conflict, wi
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Cultures of Dependency in Microfina
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Strategic Recommendations The key s
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Conclusion The study found that the
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Charitoneko, S. and D de Silva (200
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Remenyi, J (1991). Where Credit is
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Technical Appendix
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