Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010• A total of 4,293 and 4,236direct and indirect employmentopportunities, respectively, havebeen created during the year byutilizing the loans granted underthe SMERDP.• The food processing/beveragesector led by generating a totalnumber of 2,287 employmentopportunities during the year2010.• In terms of the creation of directemployment opportunities, KandyDistrict leads by generating670 employment opportunities,followed by Galle, Mataraand Nuwara Eliya Districtscreating 647, 450 and 335 jobopportunities respectively, thereason being that the bulk of theloans have been distributed to thetea sector SMEs located in theseDistricts.MicrofinanceSectorthat are different in institutionalstructures, activities, size,operating mechanisms, andoperating areas and in the mannerof funding their activities. Table6.3 shows that the SamurdhiBank Societies and SANASA CooperativeSocieties accountedfor more than 50 percent of themicrofinance operations.low-income rural population and lowincomecategory of urban segments. The depositors base of theAt present, these MFIs are scattered in microfinance amounts to 20.8the neighbourhoods of the low-income million, which is equal to thepopulation throughout the country. population of the country becausesome of the depositors are havingThe microfinance sector in Sri Lanka deposits in several microfinanceconsists of a variety of institutions institutions.Table 6.3 > Microfinance InstitutionsType of Institutions No. of Outlets PercentageSamurdhi Bank Societies 1,040 10.57CRBs & Women’s Development Co-operatives 1,905 19.37“Microfinance” has been identifiedas an effective instrument forthe reduction of poverty of ruralcommunity due to its contributionto the growth of rural sector andimprovement of the quality of life.According to the “Mahinda Chintana”-Ten Year Horizon DevelopmentFramework, around 65 percent ofMicrocredit is provided throughthe Government. The SamurdhiDevelopment Programme, whichwas introduced in 1995, is the largestof these initiatives. It satisfies thefinancial needs of the low-incomepeople who do not have direct accessto formal banking systems andFinancial Institutions. A large numberof Microfinance Institutions (MFIs) areoperating in the country, providingfinance for small-scale enterprises,SANASA/TCCSs (active societies) 4,071 41.39Other MFIs (NGOs/Limited LiabilityCompanies/Companies Limited by2,500 25.42Guarantee)Branches of Licensed Specialized Banks(Regional Development Bank,318 3.23Sanasa Development Bank)Total 9,834 100.00Source: Microfinance Industry Report 2010293