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

The Non Performing Loan portfolio stands at SLR 800,000.00 that was due
mainly to the displacement from Kayts and Islands in 1995 and the recent
displacement in April/May 2000. Recovery stands at an average of eighty-five
percent with no loans being written off.
The SDF deposits its cash with the Peoples Bank and the present balance of cash
on hand as at the end of June 2001 was SLR 373,115 in a savings account with
the bank. The accounts are audited monthly and then at the end of each financial
year. External auditors are appointed using a tender procedure that is fair and
transparent. All financial accounts and audit results are open for membership
examination on request.
This NGO is becoming a true microfinance intermediary and with the
introduction of further financial ratios and computerised monitoring will be able
to proactively plan sustainable growth in outreach.
OXFAM
Microfinance interventions were first initiated in 1998 and Oxfam's perspective,
of microfinance is that it is a tool for rehabilitation and development and in the
areas affected by conflict it is utilised as a means to improve income and food
security of the affected communities. Oxfam currently undertakes microfinance
projects in the North and East region, the Plantations and the Southern Province.
The interventions undertaken are through partners who are legally registered
NGOs and project can be either a pure microfinance intervention or a segment of
a project that for example is primarily focused on food security.
Prospective partners come to Oxfam through visits to their district, as well as
training courses and workshops that are publicly advertised. Partner organisations
can have been assisted by other international or national organisations and this is
no bar on Oxfam initiating a microfinance project with the organisation. Projects
are from one to three years and monitoring of the projects continues after
completion so that impact of each project can be assessed over a longer period of
time than the project term and long-term relationships can be formed. Oxfam's
financial year is May to April and it prefers to receive and accept proposals
between January and March so that projects can start up in May this is however
not compulsory.
Proposals are preferred in either Sinhala or Tamil as this shows that the
organisation’s management has undertaken the work and is committed to the
project, rather than getting an external consultant to write up the proposal.
Checklist appraisals are carried out on the prospective partners through on site
visits and examination of the organisations history and records. Dependant upon
the nature of the project, Oxfam believes that capacity building and where
necessary some recurrent expenses are acceptable for funding assistance in some
of the projects.
Some other assistance such as the supply of computers and computer software is
included in the intervention as part of the capacity building of the implementing
partners. Gender is a cross cutting theme that Oxfam prefers in all the projects
that it approves.
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