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

The MPCSs were equally disrupted and no loan activity was being undertaken
except for those MPCSs that had received seed funding from the UNDP/JRRP
project that re-started microfinance credit activity with ten MPCSs in Jaffna in
1999. These figures have been shown in the survey in place of CRB loan
information under UNDP. Accumulative CRB savings information is included in
the survey and was obtained from the UNDP. CRB information for all other
districts was provided by the Commissioner Co-operative Development's Office.
Until recently the International community was not allowed to work directly with
the NGOs in Jaffna and as a whole microfinance activity through NGOs was
limited. However, four of the six main NGOs practising microfinance are
included in the survey.
The INGOs working in Jaffna that practice microfinance are FORUT and CARE
who in 2000 were working directly with CBOs and some Fishing Cooperatives,
and this data is included in the survey. UNHCR were partnering with GoSL in
Jaffna, however most of the micro credit activity took place before the year 2000
and unfortunately detailed data on this programme was not available to the study.
Excluding the commercial banks the information contained in the survey
represents some 75 % of known microfinance activity during the year 2000.
The TCCS Union in the Batticaloa District has more or less suspended its
operations and it appears that all or most of the savings of this district have been
disbursed as loans that have not been recoverable for some time. There was no
TCCS data for the period of this survey. There may be some savings and credit
activities still being undertaken at the society level but short of visiting each
society individually there is no way to assess the extent to which this is the case.
It is known that some 36 fishing cooperative societies have received funding of
SLR 3.3 million for microfinance projects outside of the INGO activity of CARE,
OXFAM and World Vision that is included in the survey. It is known that SCN
partner with two NGOs in Batticaloa whose activities are not included in the
survey. Excluding the banking sector the survey has captured approximately 87%
of the known microfinance activity in the district in the year 2000.
The TCCS district office in Trincomalee has been closed since 1997 and this
body with its network of branches can be considered as non-functional for the
purpose of microfinance activities. Presently there are efforts being made to
revive the Society through a newly elected committee. Interviews with local
practitioners revealed that some five NGOs were actively engaged in
microfinance activities. No NGOs responded to the survey, however the activity
of three of these NGOs has been captured in the survey through the microfinance
activities of OXFAM.
OXFAM and ZOA are the only INGOs currently practising microfinance in the
Trincomalee and are included in the survey. Both of these organisations along
with Sarvodaya who did not respond to the survey work in the 'uncleared' areas of
the district. The survey includes all of the quantitative data known to this study.
The survey suggests low levels of microfinance activity took place in the district
in the year 2000.