Microfinance Country Information
Sri Lanka


 2008 

The Sri Lankan financial market is essentially a micro-finance market with more than 80% of households having total borrowings below Rs 100,000.

Outreach of financial institutions is high with 82.5% of households having accessed financial institutions for their savings and credit needs and 75% of households have savings in such institutions. Out of this, 82% of the savings accounts earn below 10% interest per annum.

Source: GTZ

Resource Links:


Some Microfinance programmes and Institutions in Sri Lanka:
  • Hatton National Bank Limited (HNB)
    285 Galle Road,
    Colombo 04, Sri Lanka
    Tel: +(94-1) 502-822
    Fax: +(94-1) 503-907

  • Christian Children's Fund
    W. Ubeysirinarayana
    phone: 94-1-50-1238
    fax: 94-1-58-9506 or 50-2179 (attention CCF)

  • FTCCS (Federation of Thrift & Credit Cooperative Societies)
    L.B. Dasanayaka, general manager or P.A. Kiriwardeniga
    phone: 94-1-853-005 or 858358
    fax: 94-01-853005

  • People's Rural Development Association
    Dr. Susil Liyanarachchi
    phone: 94-1-695481 or 869770
    fax: 94-1-688368

  • PNN (Praja Naya Niyamaks)
    Gordon Molitor,
    phone: 941-500783
    fax:941-587-572


Statistics on Informal/Traditional Credit Markets

Shares of Formal and Informal Credit in the Rural Sector (1981/82):
Formal Sources: 40.0 %
Informal Sources: 60.0 %

Money Lenders (14.7%); Semi-professional Money Lenders (45.7%); Friends and Relatives (34.4%); Others (5.2%)

Source: Central Bank of Ceylon, Consumer Finance Survey Report.

Financial Deepening in Sri Lanka
(per cent)
       Indicators                     1950    1960   1970   1980

       Marginal Rate of 
       Financialization of 
       National Wealth                  1       2      8      27
       
       Financial Intermediation
       Ratio                           46      63     64      85

Pawnhouse Loans in Sri Lanka (1970-83)


      Year      Number    Volume in Rs.mil*
    -----------------------------------------
      1970      18,000        2 
      1971      21,000        2
      1972      61,000        7
      1973     150,000       23
      1974     235,000       38
      1975     299,000       50
      1976     306,000       54
      1977     264,000       56
      1978     249,000       61
      1979     207,000       67
      1980     242,000       97
      1983     315,000      224
    -----------------------------------------
      * Rounded figures -  one Sri Lankan 
        ruppee was worth USD 0.06 in 1980
    -----------------------------------------
Source: Review of the Economy, Central Bank of Ceylon, 1980
Hari Srinivas - hsrinivas@gdrc.org
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