Introduction to Microfinance in Sri Lanka Mr' Ravi Tissera , CEO , LOLC Micro Credit Ltd Convergence

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Introduction to Microfinance in Sri LankaMr.
Ravi Tissera , CEO , LOLC Micro Credit Ltd
Convergences 2015
April 30th, 2009
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Historical Perspective
Sri Lanka has a long history in MF dating back to
1906 where Thrift Societies were Established.
However the industry was activated by the
Cooperative Movement two decades ago Sri Lanka
has at present one of the most diversified
microfinance sectors in the region. Micro
credit in Sri Lanka is defined as loans below Rs
100000 or approximately 900 The Sri Lankan
financial market is essentially a microfinance
market with 80 of Households having either
obtained a loan of less than Rs 100,000 or have
micro savings
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Types of MFIs
Rural Development Banks Cooperative Rural
Banks Non Governmental Organisations Commercial
Banks Specialized Banks Community Based
Organisations Governments Savings Credit
Programmes Leasing Finance Companies
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Purpose of Micro Credit
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Current Situation
50 of households have unmet demand for
microfinance in Sri Lanka estimated at Rs 125Bn
or 1Bn 42 of the Population lives on less
than 2 a day. The Northern Eastern provinces
of Sri Lanka, the two direct Conflict/ Post
conflict Provinces of the country have a higher
demand for microcredit. The emergence of more
dynamic microfinance providers from the private
sector. Funding for the microfinance sectors
mainly from Govt funding credit programmes,
Compulsory savings, National development Trust
Fund Funding through bilateral funding agencies,
Foreign equity Commercial debt funding
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LOLC Micro Credit Ltd
Registered with the Central Bank of Sri Lanka
under the Finance Lease Act No 56 of 2000 to
carry out microfinance activities. The first
private sector MFI with foreign equity.
Shareholders LOLC Plc Netherlands Finance Co
( FMO) Total assets 21Mn / Active borrowers
21000 The only MFI that has an agreement with
Sri Lanka post to provide microfinance
from Within post offices Operates in
predominantly rural areas of Sri Lanka including
the post conflict Eastern Province The largest
agriculture implements financier in the country.