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

A National Poverty Conference in October 2001, commemorating the
International Day for Eradication of Poverty, 17 th October. An initiative
undertaken in collaboration with the Government of Sri Lanka and the Social
Mobilisation Network.
A Trade Fair was organised in October 2000 to facilitate market linkages for
CBO entrepreneurs
A workshop on “Building Partnerships for Microfinance” was organized in
November 2000, at Anuradhapura, for network members.
The UNDP must be congratulated for supporting the network for the past seven
years, however it has not developed much from the loose network of few
practitioners. The growth of the network appears to be affected by its ties to the
UNDP project that has its own objectives. Ideally the MFN should be a network
managed by microfinance practitioners. There is a need for network members to
develop a proposal for the institutionalising the MFN as a professional
microfinance 'service centre'.
There is a developed microfinance network in Bangladesh, the Credit
Development Foundation (CDF), which was institutionalised in 1992 and has
over 500 members. It is has its own office and professional staff and is registered
as a Company. The principle objective of CDF is to enhance the competencies of
MFIs in Bangladesh and enable them to provide adequate and appropriate
financial services to the poor through adaptation and replication of best
microfinance practices. It is believed that this model should be researched for
possible replication in Sri Lanka.
Some of the areas of focus, facilitation and development for an independent
network would be:
Lobby the government for technical assistance provision to the sector.
Lobby for less government direct participation in the operation of
microfinance schemes.
Lobby the government to eliminate practices that are harming the
microfinance sector such as loan write off’s and subsidized credit.
Lobby donors to adopt consistent microfinance assistance policies and good
and best practice standards.
Initiate and develop regulations for microfinance.
Introduce ratings or help set up a rating agency.
Hold capacity building seminars and assist exchange visits between members.
Collect periodic information on the microfinance programmes of members for
dissemination, and publish useful report and newsletters.
Form linkages with other networks and programmes especially in South and
South East Asia as well as with the donor community in Sri Lanka.
Initiate research into areas relevant to the MFIs such as the training needs in
Sri Lanka.