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

SEEDS operate microfinance across 18 districts in the country 39 As of the end of
2000, SEEDS had a total of 627511 at a value of SLR 608,367,495 and disbursed
921,596 loans at a value of SLR 2,603,967,375.
SEEDS are the most professional and transparent MFI in Sri Lanka offering a
wide range of support services to their clients. The organisation is in the process
of implementing a devolved credit plus intervention in Batticaloa in partnership
with Sarvodaya The gateway project is the vehicle through which SEEDS hope to
expand into the whole North and East region.
TCCS figures suffer from the frequently lax reporting activities of individual
TCCSs throughout the country. SANASA estimates national savings and loans
activities annually and these figures are accepted by the Central bank of Sri
Lanka. However, virtually no information is routinely reported from the North &
East region and given the war affected economies, it was felt that utilising
nationally based averages for this region was wholly inappropriate as it would
drastically skew microfinance activity on the ground.
For example, the stated estimates for Mannar for the year 2000 were 17,034 loans
with a value of SLR 175,832,955. On the other hand, the GA’s office in Mannar
reported a total of 88 loans to the value of SLR 443,600. Given this, it was
decided omit TCCS estimates in the North and East region and wherever possible
to gain on the ground information.
This in turn, led to the discovery that the district union in Trincomalee has to all
intent and purpose been inactive since 1997. Furthermore, TCCS activity in the
Wanni is largely limited to Kilinochchi where the local authorities have directed
funds to be used for housing loans to help rebuild the town. In Jaffna numbers of
TCCS branches have drastically reduced due to the conflict. In the year 2000, for
example, some SLR 18,000,000 in loans were non-performing due to
displacement, representing over 50% of the overall loans portfolio.
A number of UNDP microfinance projects have recently completed but continue
to revolve. See the UNDP profile in Part A of this report for more details. In the
North and East Region, the Umbrella Programme is focussed on providing access
to financial services above the level of basic subsistence and targeting the
entrepreneurial poor.
In Jaffna the project is proactively strengthening the MPCSs and their CRBs. In
particular, the project has encouraged the use of ‘matched’ funding and the
mobilisation of existing co-operative funds. 10 of the existing 25 active MPCSs
have been involved in the programme with plans to introduce another seven. In
the year 2000, 1,793 loans were disbursed at a value of SLR 14,499,276.
In Vavuniya the programme is to focus on building up SANASA’s ability to
operate as an effective MFI apex organisation delivering services to a wide range
of micro finance practitioners at the local level.
39 SEEDS activities Mahayayanganacut across more than one district and are unable to be
separated at the district level. Consequently, the S&C figures in the survey omit
Mahayayangangana.