A collaborative, countrywide microfinance survey in Sri Lanka performed by the German Agency for Technical Cooperation (GTZ GmbH) and the Promotion of the Microfinance Sector (ProMis) Program, organizations from the German and Sri Lankan governments, respectively, has reached several conclusions about Sri Lankan microfinance [1,2,3,4]. It found that there are over 10,800 outlets through which microfinance providers operate in Sri Lanka [1]. In total, microfinance providers have amassed Rs. 126 billion in savings and deposits, the equivalent of over USD 1.1 billion [1]. There are also 26 million savings accounts with microfinance providers in the country [1]. Additionally, the ratio of loan volume to savings volume is one to 2.6, while the ratio of loans to savings accounts is one to 5.9 [1]. Lastly, the report drew some more general conclusions about Sri Lankan microfinance. For example, Sri Lanka has a “diverse range of institutions” that provide microfinance services, but the industry is “lacking innovative approaches which could overcome the inherent barriers in access to microfinance” [1].
By Christopher Maggio, Research Assistant
About:
Promotion of the Microfinance Sector (ProMis) Program
Description:
The Promotion of the Microfinance Sector (ProMis) Program is implemented by the Sri Lankan Ministry of Finance in collaboration with the German Technical Cooperation (GTZ), an international development enterprise of the German government. It attempts to improve the microfinance industry in Sri Lanka by strengthening government institutions that effect microfinance policy, building capacity of the sector, and enhancing the quality of service of microfinance institutions (MFIs). ProMis coordinates donor activities, provides support for Central Bank regulation, performs research, disseminates microfinance information, supports technical services and rating methodologies, and assists microfinance providers in becoming financially self-sustaining. The program provides technical assistance through professional advice, seminars, studies, workshops, and training programs.
ProMis does not report to the MIX Market, the microfinance information clearinghouse. (http://www.mixmarket.org/)
Organization’s Website:
http://www.microfinance.lk/index.php
Just the Facts:
-Country of Incorporation: Sri Lanka
-Year Founded: 2004
-Legal Status: Government Program
-Area of Operation: Sri Lanka
-Participant(s)/Backer(s)/Investor(s): Sri Lankan Ministry of Finance, German Technical Cooperation (GTZ)
-Program Coordinator: Dr. Dagmar Lumm
Contact:
# 16-02 East Tower
World Trade Centre
Echelon Square
Colombo 01
Sri Lanka
Tel: +94 11 4 963773/4
Fax: +94 11 4 622485
Email: info@microfinance.lk
Additional Resources:
Sri Lankan Ministry of Finance: http://www.treasury.gov.lk/
Sri Lankan Central Bank: http://www.cbsl.gov.lk/
German Technical Cooperation (GTZ): http://www.gtz.de/en/
Countrywide Survery on Microfinance in Sri Lanka: http://www.microfinance.lk/gtzpublic.php
Bibliography:
[1] Daily News article from November 16, 2009 entitled ‘Country microfinance network extensive – Survey’: http://www.dailynews.lk/2009/11/16/bus03.asp
[2] GTZ GmbH: http://www.who.int/violenceprevention/about/participants/gtz/en/index.html
[3] ProMis: http://www.microfinance.lk/
[4] Countrywide Microfinance Survey in Sri Lanka: http://www.microfinance.lk/gtzpublic.php
Source Article: Daily News article from November 16, 2009 entitled ‘Country microfinance network extensive – Survey’: http://www.dailynews.lk/2009/11/16/bus03.asp
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