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

The NGO questionnaire survey identified a total of 74 NGOs practising
microfinance in 19 Districts throughout the country that showed a total number of
105,218 savings accounts at a value of SLR 118,327,719 and disbursed 57,610
loans to a value of SLR 212,385,761. In the course of the wider survey of
microfinance actor activity and not accounting for multiple branches of the same
organisations a total of 141 NGOs practicing microfinance were identified.
Of these approximately two thirds operate in the North and East region being
funded primarily by AusAID, CIDA, NORAD, OXFAM, UNHCR. However, of
these, the 74 NGOs responding to the questionnaire represent 52% of the known
NGO organisations practicing microfinance in Sri Lanka.
In addition, it is known that NORAD has recently funded approx. 25 NGOs
throughout the country. Unfortunately, detailed information on NORAD funding
was not made available to the study.
OXFAM practice microfinance directly and with NGOs in the North and East
Region (Ampara, Batticaloa, Mannar, Trincomalee, Vavuniya and the Wanni) and
in the plantations (Badulla and Nuwara Eliya). In 2000 it is estimated that
OXFAM disbursed 3,430 loans totalling SLR 17,549,075. OXFAM are presently
considering upgrading their microfinance competence and escalating their levels
of intervention in the event of a durable peace agreement.
The Regional Development Banks operate microfinance in 14 districts of the
country. In the year 2000 a total of 998,448 savings accounts to a value of SLR
2,567,437,645 and disbursed 487,195 loans at a value of SLR 3,398,747,401.
Since restructuring, the RDBs have become marginally profitable, however, nonperforming
loan portfolios exceed SLR 200,000,000 in 3 of the banks and over
SLR 100,000,000 in two others.
Samastha Lanka Praja Sanwardena Mandalaya (SLPSM) practice microfinance in
the three districts of Hambantota, Kalutara and Moneragala. As of the 31 st of
December 2000 it had mobilised a total number of 3,541 savings accounts at a
value of SLR 11,110,000. During the year 2000 it disbursed a total of 1,645 loans
at a value of SLR 8,422,300. As of the 31 st December 2000 it had disbursed a
cumulative total of 4,251 loans at a value of SLR 29,034,662. SLPSM have
received donor funding from AusAID for an economic improvement project for
the period 2000 to 2001 to a value of AUS$ 18,826. Unfortunately it was not
possible to include these figures as they were not discovered until after the time of
writing.
Samurdhi operated microfinance in 19 of the districts in the country in 2000. In
the year 2000 a total value of savings accounts was SLR 2,120,403,370 and loans
disbursed were 271,657 to a value of SLR 1,822,189,000. Cumulatively, it is
estimated that Samurdhi have disbursed 481,652 loans at a value of SLR
4,610,692,000. With the present cease fire Samurdhi have committed to a rapid
expansion of over 75 new banks in the North and East region in the next 6
months.
The South Asia Partnership practices microfinance in 11 districts in the country
with over 200 active societies with 5000 members. Over the past two years they
have received approx. SLR 40,000,000 by, among others, CIDA, AusAID,
NORAD and UNDP. In the year 2000 savings activity totalled 15,975 accounts to
a value of SLR 26,688,750 and disbursed 208 loans at a value of SLR 5,200,000.