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

CARE’s microfinance activity is mainly in conflict-affected areas and,
accordingly their activities have been subject to displacement and interruption;
especially during the year 2000.
Accounting for issues of overlap, inactivity and organisations with more than one
subsidiary, CARE presently works with least 27 different NGOs, 29 co-operative
societies and 26 S&C groups.
Including the CAB-J project that started in Jaffna in 2001, CARE Micro-projects
(Funded by UNHCR) and the CIDA funded Food Security Project, it is possible
to calculate that, cumulatively, CARE’s microfinance activity in Batticaloa,
Jaffna and the Wanni amounts to a minimum of 10,975 loans to clients totalling at
least SLR 49,300,000 38 2 new CARE projects LIFT and Wanni Development are
just commencing operations having microfinance segments that focus on capacity
building and broadening of member outreach of established partners. These
projects also have a remit to assist social and economic mobilisation at the
community level.
There are 306 Co-operative Rural Banks operating in all districts of the country
with 1,476 branches as at the end of 2000. A total number of 5,524,751 savings
accounts with a value of SLR 14,836,780,000 as of the same period. A total
number of 715,538 loans with a value of SLR 6,184,064,000 disbursed in 2000.
As of the end of 2000, the CRBs have invested some SLR 8,500,000,000 in
commercial banks, Treasury Bills and other investments.
DRC commenced microfinance operations in 2000 as part of their to concentrate
on the rehabilitation of internally displaced persons. DRC operate in
Anuradhapura, Mannar and Vavuniya. Partnering with NGOs, In 2000 DRC’s
microfinance activity totalled 221 savings accounts with a value of SLR 275,805
and disbursed 561 loans to a value of SLR 9,795,881. With the advent of the
ceasefire, DRC are currently planning a rapid expansion into other areas of the
North & East region.
FORUT practices microfinance through NGO and CBO partners in
Anuradhapura, Colombo, Gampaha, Hambantota, Jaffna, Kegalle, Matale,
Puttalam, Vavuniya and the Wanni. FORUT is arguably the longest standing
INGO microfinance granter-practitioner in the country. In 2000 FORUT, 29,141
savings accounts at a value of SLR 28,965,037 and disbursed 3,864 loans at a
value of SLR 14,581,424.
FORUT have recently reviewed their policy on microfinance and are moving
away from subsidised models towards more business-like like approaches
focussed on financial and operational sustainability. FORUT are also beginning to
incorporate support services for the entrepreneurial poor into their programmes.
38 This actual total cumulative loans information for CARE is likely to be significantly higher than
this. Estimates do not account for cumulative lending in Killinochchi or Mullaitivu districts. Also
figures do not include S&C activity for CARE’s recently completed RAPID project in
Trincomalee or CARE’s TEAM project outside of the conflict affected area as detailed figures
were not available.