SEFEC Newsletter 4th Edition English Version

QTHE
UARTERLY
SEFEC
NEWSLETTER
4 th EDITION • NOV 2020
Mitigating the impact
of Covid-19 on MSMEs
in targeted value chains
in Sri Lanka

WHAT IS SEFEC?
SANASA is a large and diversified financial
cooperative institution in Sri Lanka, which includes a
network of community-based cooperatives, trust
companies and apex companies that support and
reinforce the development mission of SANASA.
On June 3, 2016, Canada’s Department of Foreign
Affairs, Trade and Development signed a
contribution agreement to support SANASA in the
establishment of an Entrepreneur Financial
Expertise Centre in Sri Lanka (SEFEC). The project is
implemented with the technical assistance of DID,
an international development consultancy affiliated
to the Desjardins Co-operative Financial Group in
Canada.
The project is implemented in Sri Lanka by
SANASA International with the partnership of
SANASA Federation, SANASA Development Bank
(PLC), SANASA Insurance, SANASA Campus,
SANASA Uththamavi and three Trust Companies.
SEFEC is the central incubator of the SANASA
network for value chain development and
financing. It aims at promoting the sustainable
growth and development of Micro, Small and
Medium Enterprises (MSMEs) through the provision
of customized financial and non-financial products
and services, with a focus on women
entrepreneurs and rural areas. During the current
5-year pilot phase, SEFEC is working in four value
chains (traditional rice, pepper, banana, and
tourism) across four Provinces of Sri Lanka.
SEFEC INTERVENTION AREAS
Grow local
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Samadanie Kiriwandeniya
Managing Director, SANASA International
It’s with much pleasure I like to share with you the latest achievements of SEFEC
project which has embarked on a challenging task to stabilize the income of the
SME community, particularly females along 4 value chains. Despite the COVID-19
related disruptions, I am happy to note that the emergency program which was
swiftly put together by the project team was able to support the value chain actors,
either to continue their income avenues or to diversify the income sources through
alternative businesses. I thank Canadian government and DID for the generous
funding assistance and technical support, and look forward to being more involved
to support the local economic development process with the learnings we gather
under SEFEC as we navigate in these challenging times.
Pierre Markowski
Project Director, DID
In April 2020, the SEFEC team developed an Emergency Program with the objective
to provide immediate assistance to MSMEs operating in the project’s targeted value
chains and geographic areas towards their recovery from the negative impact of the
COVID-19 outbreak. The program was to be implemented over a 6-month period
with total funding of Rs. 77.7 million provided by Global Affairs Canada. The program
evolved around the following priority areas: (i) Promote crop diversification activities
for smallholder farmers and rural women entrepreneurs; (ii) Introduce processing
equipment for value addition in the agricultural value chains; (iii) Facilitate the
creation of market linkages for producer organizations; (iv) Prepare the ground for
relaunch of community-based tourism activities in Northern Province; and (v)
Facilitate access to affordable loans for MSMEs including women conducting
income generating activities. This 4th edition of the SEFEC Newsletter presents key
achievements of the Emergency Program to date as we look forward to replicating
and scaling them up.
Chopadithya Edirisinghe
Value Chain Development Specialist and Team Leader, SEFEC
Regardless of the threat of being affected by the COVID-19 virus, the value chain
team has shown significant progress over the implementation of the Emergency
Program in the field. The pepper value chain team has worked closely with the
Orgodopola producer association to establish a modern pepper processing center
at Rideegama, Kurunegala district. Similarly the traditional paddy value chain team
has supported a group of cattle shed owners in operating an organic fertilizer
production unit at Beliaththa, Hambanthota district. The tourism value chain team
has continued its efforts on developing Northern tourism activities along a
community-based approach, while the banana value chain team has distributed
banana plantlets and prided training to affected producer organizations in Northern
Province. Additionally, the project has entered into a partnership with the Export
Development Board of Northern Province to strengthen the capacity of
food-related MSMEs to reach the export markets. These initiatives will contribute to
alleviate the hardships resulting from the recent economic lockdown for
entrepreneurs in our areas of intervention.
project supported by

TOURISM VALUE CHAIN
Official Launch of the Community Based Destination Marketing Campaign
at the World Tourism Day Celebration in Northern Province
With the purpose of aligning the rural community
under the flagship of tourism, the United Nations
World Tourism Organization (UNWTO) has
declared 2020 under the theme of “Tourism and
Rural Development”.
Celebrating the unique role that tourism plays in
providing economic opportunities and ensuring the
preservation of cultural and natural heritage, the
Northern Tourism Bureau officially unwrapped the
community-based Destination Marketing
Campaign in parallel to the World Tourism Day
Celebration on 23rd September 2020 at Tilko City
Hotel, Jaffna. This special event was organized in
collaboration with SANASA International, with Hon.
Mrs. P. S. M. Charles, Governor of Northern Province,
gracing the occasion as the Guest of Honor. It was
attended by over 150 participants from the public,
private and cooperative sectors and tourism-based
MSMEs.
“Why I see this domestic tourism initiative important
for today is, it can be promoted among Sri Lankans
living in other districts and even the Sri Lankans
living abroad, because this initiative can launch
from the place where our community stands. We
would be able to give an opportunity for all Sri
Lankans to discover the unexperienced beauty of
Northern Province. This will be a better trial for all of
our tourism stakeholders to stand as a network or a
value chain to get rid of this difficult situation” said
Governor, Hon. Mrs. Charles addressing the
participants.
She further stated “Looking ahead, to deal with new
challenges, the cooperative, private and public
sectors must transform themselves, and build new
capabilities. With this initiative, you have embarked
on a major drive to become more powerful as a
community using the new technology, I fully
support this effort”.
Students of Mahadeva Swamikal Children Home
founded by cooperative leader late Mr.
Rasanayagam, presented an Authentic Carnatic
Style Cultural Performance depicting the Northern
Culture.

“The tourism industry of Sri Lanka
was traditionally seen as a sector
comprised only with hoteliers and
travel companies though the
studies conducted by the SEFEC
project bring us an important
message to look at the value chain
by a holistic eye” said Mr. Stanly
Mascarenes, Chairman of
Northern Tourism Bureau
delivering the welcome speech of
the programme. “This year
Tourism Day is extensively
dedicated for the tourism
entrepreneurs who struggle and
search for new avenues to grow.
Those brave entrepreneurs will
become successful business
giants in future” stated Mr.
Mascarenes. He further explained
that the creation and facilitation of
sustainable development
platforms is the responsibility of
Northern Tourism Bureau.
Therefore, it has taken a step
ahead to work collectively with the
Department of Cooperatives to
drive this tourism initiative forward. Mrs. Samadanie Kiriwandeniya,
Managing Director, SANASA
International, who developed the
pathway to this community
initiative, delivered a fruitful
speech regarding the project
scope. She expressed that
Northern tourism is lucky to have
been selected for the ongoing
pilot in the tourism value chain and
that success stories of this
initiative can be used for other
regions also.
Mr. Lakshman Abeysekara,
Chairman, SANASA Development
Bank, stated that “As the banking
partner of this project, SDB is
always happy to support the Small
and Medium Entrepreneurs in
Tourism of Northern Province”,
delivering a guest speech for the
event.
As a pilot, the SEFEC project team
has developed strategic plans
with community-based tourism
routes in all five districts in
Northern Province. The Value
Chain Officer, Ms. Harshi
Abeynayake, offered the five
strategic documents with the
research report to the Hon.
Governor for future development
references of the sector.
It was a historic moment for Sri
Lanka, being the first collaborative
effort by Tourism Sector and
Cooperative Sector for the
promotion of a sustainable rural
development.
Mr. P. Vageshan, Commissioner of
Department of Cooperative
Development in Northern
Province, highlighted the
importance of linking everyone in
the path of tourism to create value
for the tourists in order to have a
positive word of mouth. “So, each
actor in the path is important and
depends on other suppliers,
therefore cooperatives are
important as its title says “Each for
All and All for Each” said Mr.
Vageshan addressing the tourism
community.
“It’s indeed a great honor of making
the closing remarks of this memorable
historical golden occasion of Northern
Tourism. In a day where the entire
world talks about the theme “Tourism
and Rural Development”, we were
able to practically initiate the concept
of rural development with the Real
North Destination Campaign”.
Harshi Abeynayake
Tourism
Value Chain Officer

TOURISM VALUE CHAIN
Workshop on Pandemic Preparedness for Micro, Small & Medium Scale
Hotels & Restaurants in Jaffna, Mannar & Vavuniya
SEFEC in collaboration with the Northern Tourism Bureau and Korea Lanka School of Hospitality and Hotel
Management jointly conducted a Workshop on Pandemic Preparedness for Micro, Small & Medium Scale
Hotels and Restaurants at Tilko Hotel, Jaffna, on 29th August 2020, at Mannar Coccos Garden on 30th August
2020 and at Hotel Oviya, Vavuniya, on 06th September 2020.
100 employees from registered Hotels and Restaurants were given a 1-day comprehensive training on the
COVID-19 Pandemic Preparedness Guidelines published by Sri Lanka Tourism Development Authority
(SLTDA).
The objective of this training was to prepare employees with the best safety measures to welcome the
national and international guests in the next tourist season.
Employees of Hotels & Restaurants in Jaffna
District, were trained on the Pandemic
Preparedness Course
Employees in Hotels & Restaurants in Mannar
District were trained on the Pandemic
Preparedness Course
Employees in Hotels & Restaurants in
Mullaitivu, Kilinochchi and Vavuniya were
trained on the Pandemic Preparedness
Course

TOURISM VALUE CHAIN
Distribution of sanitary materials & equipment
Participants in the training workshop on Pandemic Preparedness Guidelines were requested to provide their
immediate requirements for sanitary materials, supplies and equipment as the SEFEC project had allocated
some relief packages under its Emergency Program.
A total of 63 Hotels and Restaurants from Northern tourism industry received the essential items under the
supervision of the Northern Tourism Bureau during the period from September 23-26, 2020.
33 MSME beneficiaries in Jaffna
14 MSME beneficiaries in Mannar
10 MSME beneficiaries in Vavuniya
6 MSME beneficiaries in Mullaitivu & Kilinochchi

TRADITIONAL RICE
Organic fertilizer production plant will supply quality compost
to nearby farmers
The availability of quality organic fertilizer (compost)
is one of the main issues to be addressed in organic
agriculture. Due to poor quality, organic fertilizer
applications often have to be used in huge quantities
for proper effectiveness.
Mr. T.C.L. Ratnayake is the owner of the Beliatta
Organic Fertilizer Production Plant. He produces
approximately 1500 kg of fertilizer per month. He has
been marketing its produce under the brand name of
“Haritha Products”. His main customers are the
Department of Agriculture (DOA) and farmers who
live in the area. The SEFEC project helped him obtain
a financial facility through SANASA Development
Bank to expand production at his plant.
Under the post COVID-19 Emergency Program,
SEFEC facilitated the creation of a cattle farmers’
association to provide raw material to the plant. The
association received financial support to purchase a
semi-automation system to increase the efficiency of
the plant. Once this process is finalized, the
production capacity will increase tenfold. The plant
will be able to fulfil the high demand for quality
organic fertilizer in the region.
Organic fertilizer thus produced will be available in
dry compost and liquid forms. The liquid fertilizer can
be used as a pest insect repellent. This is a unique
competitive organic fertilizer which can go into the
farmer markets, 100% free from weed seeds and
enriched in main essential nutrients. Samples were
sent to the Industrial Technology Institute (ITI) for
nutrition component reports.
"Quality raw materials are essential to get quality
agricultural products. These raw materials should be
easily available and reasonably priced and in close
proximity to the relevant farming lands. SEFEC hopes to
ensure sound organic farming systems in Sri Lanka to
fight the mass spreading of non-communicable
diseases in the Sri Lankan community caused by the use
of chemical fertilizer.”
Ruchira Gunathilaka
Traditional Rice
Value Chain Officer

BANANA VALUE CHAIN
Technical & financial assistance to producer organizations in
collaboration with Department of Agriculture in Northern Province
Samadanie Kiriwandeniya
Managing Director
SANASA International
Reginold Mark
Banana VC Officer
SEFEC
S. Sivakumar
Provincial Director
Agriculture Northern Province
A.Pathinathan
Chief Secretary
Northern Province
A tripartite MOU was signed between Chief Secretary of Northern Province, on behalf of the Provincial
Department of Agriculture - Northern Province, and SANASA International on behalf of the SEFEC project on
12th August 2020 at the Northern Provincial Council, Kaithady, Jaffna, with the objective of supporting the
banana sector which was negatively affected by the COVID-19 pandemic.
Banana producers are facing difficulties in finding quality raw materials and are losing customers. It is
therefore essential to promote new robust varieties among the farmers to catch up new markets. Five
producer organizations (one in each Northern district) accounting for a total of 105 farmers were selected for
the pilot phase.
The participating farmers received assistance through the provision of tissue culture plantets of Kappal and
Cavendish varieties; technical training on land preparation, fertilizer and crop management, disease and pest
control, pre- and post-harvest techniques; certification on Good Agriculture Practices (GAP); and facilitation
of market linkages with exporters. Discussions were also held with the Assistant Commissioner of
Cooperative Development regarding the potential involvement of multipurpose cooperative societies as
retail outlets for banana products.
“We are encouraged by the collaboration with banana value chain actors as well as other
stakeholders, especially the Northern Provincial Department of Agriculture, to join hands with us to
promote the development of the banana value chain.”
Reginold Mark
Banana
Value Chain Officer

PEPPER VALUE CHAIN
Construction of a processing center for pepper and
other spices at Rideegama
Black pepper, known as the “King of Spices”, is the most important and widely used spice in the world.
Quality of Sri Lankan pepper is one of the major issues identified by the SEFEC project team.
The purpose of building a processing center is to increase the availability of quality certified pepper to meet
the requirements of exporters and processors, thereby ensuring a premium price for farmers. The facility will
also be used to improve the quality of other spices such as clove, nutmeg, turmeric, ginger, jackfruit and
lemongrass. The center will be established at Rideegama, Kurunegala District, North Western Province.
It will be owned by the SANASA Union, who will lease it to the Orgodapola Pepper Producers Organization
for operation over a 10-year period. This PO has 21 members who have been trained by the project on preand
post-harvest practices and been facilitated for GAP certification and auditing from the Department of
Export Agriculture (DEA). It is expected that up to 300 smallholder farmers from the surrounding areas will
get the benefits of the center. The project will facilitate Good Manufacturing Practices (GMP) certification by
the Industrial Development Board (IDB) for the center. Market linkages have been established with Verger
Naturals, a spice exporter based in Horana.
Here the technical Advisory servicers is providing by Ms Tushari
Lianage Head Of Processing and Post-harvest Unit In Central Spice
Research center of Department of Export agriculture and Assistant
Director DEA, Kurunegala to the Orgodapola Processing center PO,
Rideegama Sanasa Union .
The construction Orgodapola Pepper processing center was done
by the producer association and it has participated Polgahawela
trust Genaral Manager Mr Abeywicrama,Rideegama Sanasa Union
General manager Mr Nimal and Kandegedara PS Chairman Mr
Kadegedara. Several rounds of discussions were conducted with
the producer association members and the staff to strengthen the
capacities on working as a producer group.
Gap Consultant Mr. Wijesekara facilitate Gap certificate isuing for
Orgodapola Pepper Producer Group. 25 Members . and it has
introduced Value addition with Certification for export market .

PROVIDING ACCESS TO MARKETS
Establishment of a Marketing Center at Piduruwella
The importance of marketing in the commercialization of agriculture products and expansion of agriculture
productivity is increasingly recognized. Over the last three years, the SEFEC team has been involved in the
creation of market linkages between buyers and sellers. It has now become important to create market
places where the consumers and producers can meet each other and conduct direct transactions.
The SANASA Polgahawela Union and Trust Company have agreed to convert a piece of land alongside the
Kurunegala-Negombo main road into a marketing center to sell rural agriculture products and inputs for
organic agriculture. The center will facilitate farmers from the surrounding areas to sell their fresh produces
and enable local women entrepreneurs to sell ready-to-eat cooked products, processed and packed food
items including spices and traditional rice, to the urban customers and both foreign and local tourists.
Moreover, the center will help producers and MSMEs from Northern Province to reach southern markets.
The tender document was completed by the
Technical committee, after publishing an paper
advertisement, facilitated by SANASA trust found
20 women entrepreneurs to employ at the
marketing center.,
SANASA trust and technical commitee planing the
building area with the selected architect.
“We will improve our production for the export market by
introducing certifications like GAP, GMP, Organic and
Geographical Indication (GI) for local pepper farmers and
value chain actors, The Orgodapola pepper processing
center and the marketing center at Piduruwella are giant
steps ahead for our farmers and stakeholders."
Bandara Nikathenna
Pepper
Value Chain Officer
GAC Mission visited Polgahawela and Orgodapola.

SUPPORT TO FOOD-RELATED MSMEs
Partnering with the Export Development Board to support
export-oriented MSMEs in the Northern Province
Samadanie Kiriwandeniya
Managing Director
SANASA International
K.Kanojan
Assistant Director
EDB, Northern Province
During the need assessment survey conducted by the project, it was found that MSMEs involved in
food-related activities were highly vulnerable to the COVID-19 situation, more than any other agriculture
value chain. In response, an action plan was developed with EDB’s Northern Provincial Office to provide
assistance to 48 MSMEs involved in the food sector. The MOU with SANASA International on behalf of the
SEFEC project was signed on 13th August 2020. The selected MSMEs will receive support in the following
areas: development of a guide book on export procedures and requirements; training on financial literacy,
company registration, business continuity planning, export packaging and labelling regulations, customs
clearance; exposure visits and market linkages with export companies in Colombo.

CENTRE OF COOPERATIVE AND
COMMUNITY STUDIES (CCCS)
Special Training Program designed to support MSMEs affected by the
COVID-19 global pandemic
MSMEs have been recognized as an important strategic
sector for generating high economic growth and
reducing unemployment, inequality and poverty. Even
though there is a national policy on SME sector under the
purview of the Ministry of Industries and Commerce,
much deliberation and attention is needed to harness its
full potential. The sector needs to be carefully nurtured
by providing institutional support, access to finance,
business development services, and less regulatory
oriented business environment.
The Business Continuity Planning (BCP) training program
was designed by the SEFEC team in collaboration with
the CCCS at SANASA Campus. The objectives of the
program are i) to teach MSMEs how disaster risks
implicate and affect different aspects of business, and ii)
provide guidance and formats on the preparation of
Business Continuity Plans with the incorporation of
disaster risks.
The module discusses both natural and man-made
disasters which affect MSMEs. The disaster risks can be
defined as “the potential disaster losses, in lives, health
status, livelihoods, assets and services, which can occur
to a particular community or society over some specified
future time period”.
The CCCS conducted a Training of Trainers program on
the new module from 19-21 August 2020 at SANASA
Campus with the participation of 11 trainers in both
Sinhala and Tamil. The program will now be rolled out to
MSMEs in the SEFEC’s targeted value chains.
Manjula Widanagama
Business Incubator Specialist

ENHANCING FOOD SECURITY
AND INCOME DIVERSIFICATION
Promoting home gardens with women entrepreneurs
During the COVID-19 pandemic, farm products,
vegetables, fruits, medicinal plants, spices and other
marketable cash crops have not been available in the
usual quantities in both rural and urban areas of Sri
Lanka. As a result, rural households have become
increasingly convinced about the importance of
developing home gardens to ensure their food security
and getting additional income. It is a production system
that poor households can easily enter with very little
resources, using locally available planting materials,
natural manure and indigenous methods of pest control.
Under the Emergency Program, SEFEC has worked
together with SANASA Uththamavi and Department of
Agriculture (DOA) to support the creation and/or
expansion of 400 home gardens by organizing
awareness sessions and technical trainings by relevant
line agencies, coordinating with service providers for
quality inputs, and establishing market linkages with
organic product buyers. A special feature of the
program is to encourage the adoption of soil and water
conservation measures which will improve the
productivity and ensure the long-term sustainability of
land use.
The selection of beneficiaries was done in coordination
with 36 Primary Societies across 11 districts in 4
provinces. Women entrepreneurs were also identified
for the production of organic manure and the operation
of grass and pruning cutters. Detailed lists of
equipment, tools, seedlings and planting materials were
prepared for distribution to the participants.
Two trainings were conducted for participants on “Basic
agricultural methods” and “Preparation of organic
manure and pest repellents”, completed by exposure
visits to well-developed farms in their areas. Some
women are producing value added products such as
spice based pepper sauces, nutmeg chutney, grain
based nutritional mixtures, and medicinal teas using
locally available herbs. SEFEC has encouraged them by
giving stainless steel pots and gas stoves to enhance
their business and linked them with exporters to expand
their market opportunities. The project also granted
roofing sheets to construct proper shelters to avoid ruin
of the manure production from rain and over-heating
through exposure to the sunlight. Some Primary
Societies have undertaken to build sales sheds for their
members. In other instances, women have
implemented savings schemes based on the home
garden program.
List of SANASA
Primary Societies involved
in the home garden program
Sabaragamuwa Province
Kegalle District
Province District Society
Sabaragamuwa Kegalle Habalakkawa, Keerapana, Rankothdiwela, Ekiriyagala,
Hungampola, Deewala, Thalgahadeniya, Alawwaththa,
Makura, Imbulana
Rathnapura
Pallekkanda, Panawala, Bibilegama, Yatipasgamuwa,
Pahala Karavita
North Western Kurunegala Panaliya, Pothuhera, Aragoda, Kandepola, Wadakada and
Dewagiriya
Southern Hambantota Kadigamuwa East, Julampitiya, Kinchigune,
Matara Dangala, Dampella
Galle Maddewila
Northern Jaffna Erlalai Sri Vinayagar and Urumpirai North Luxmi
Kilinochchi Uruthirapuram North and Unionkulam
Vavuniya Rasenthirankulam Women’s and Kovilkulam Women’s
Mullaithive Thirumugapuram and Kaddavinayagar
Mannar St. Sebastian
Agriculture Instructor demonstrating the
ways of planting a banana plantlet
Distributing Banana Plantlets
Sales outlet for women products at
Rankothdiwela PS
Practical session of production of
live organic manure
Knowledge on low space farming using ‘Cultivating towers’ also practiced by
the participants in a training programme conducted in Uththamavi premises.
Ms. Sandya Kumari from Habalakkawa PS
was given the stainless steel pot
Ms. Lalitha Ranjani from Habalakkawa PS
was given the gas stove with stand

Northern Province
Home garden training program in
Urumpirai North Luxmi TCCS
First home garden training program in
Thirumugapuram TCCS
First home Garden training program in
Uruthirapuram TCCS
Rasenthirankulam women TCCS
Basic Agricultural Methods and Preparation of
organic fertilizers & pest repellents
Kovilkulam women TCCS
Basic Agricultural Methods and Preparation of
organic fertilizers & pest repellents
Kaddaavinayagar TCCS
Basic Agricultural Methods and Preparation of
organic fertilizers & pest repellents
North-western (Wayamba) province
Kurunegala District
St.Sebastian TCCS
Basic Agricultural Methods and Preparation of
organic fertilizers & pest repellents
Bund cultivation in Wadakada Training program at Dewagiriya PS
Practical training at Wadakada PS Practical training at Wadakada PS
Shelters for organic manure production
The shelter belongs to Ms. Sudheera
Damayanthi Jinadasa and Ms. K. Gnawathie
from Aragoda Primary Society is being
constructed.
Rathnapura District
Training at Bibilegama PS Practical Training at Yatipasgamuwa PS Handing over Cardomom plants. Exposure visit in Pallekkanda PS
Southern Province
Hambantota, Matara and Galle Districts
Practical training program in Dampella PS Exposure visit – Kadigamuwa PS Training program Julampitiya PS Training program in Dangala PS
“COVID-19 has taxed every aspect of life with unprecedented pressure. Food security is no
exception fuelled by lockdowns. Disrupted markets, lack of international trade, lower travel,
and mobility restrictions have hindered people’s ability to grow, buy, sell, or prepare the food
they need to stay healthy. Women can prove to be powerful actors to solve the problem.
Women are a key — and yet often invisible and they are part of the solution and they are
leaders, innovators, farmers, caretakers, and saleswomen. If we keep women at the core of
COVID-19 response, we may see better results. Women-led 400 organic home gardens is an
initiative with that in mind.”
Subhashini Vithanage
Social Responsibility Officer

“JEEWANA SHAKTHI”
MICRO FINANCE LOAN SCHEME
Facilitating access to credit for micro entrepreneurs
In a bid to provide immediate loan relief to micro entrepreneurs affected by the COVID-19 pandemic, SEFEC
has provided technical and financial assistance to the SANASA Federation in introducing a simple yet
systematic micro finance product to be offered through its network of Primary Societies. A group of 70
Societies were selected to participate in the pilot phase of the scheme. They will receive incentives in the
form of training, salary subsidy for a dedicated loan officer, and awards based on their portfolio performance.
The new product carries the following
key features:
• Internationally benchmarked loan scheme
which is tailor-made for small business owners
engaged in self-employment and income
generation activities
• Savings being used in lieu of collateral with
minimum documentation
• Loan amount up to Rs. 200,000
• Low interest rate of 1% per month
• Repayment over 10 months
• Systematic approach for debt collection
• Counters the increasing competition in the
financial services sector
• Builds a positive image among the local
community, while promoting revenue generation.
Expected benefits For Primary Societies:
• Increased membership
• Initiation of board directors and staff to business lending
• Higher loan disbursements with lower risks
• Higher yield on portfolio
• Higher productivity of staff
• Creation of “nursery” for larger business loans
• Higher satisfaction among existing and new members
• Enhanced role and image of the institution
• Improved overall profitability
A.K. Kingsley Amarathunge
MSME Finance Officer
project supported by
sefec.lk