Report on the “Outreach of Financial Services in Sri Lanka”: A Look at the Deman...

Aug 2008
Colombo, Sri Lanka, August, 04 2008 - A report on the results of a nationwide survey to determine the extent of outreach of microfinance services in Sri Lanka has been published by ProMiS. ProMis was commissioned for this publication on the initiative of the Ministry of Finance and Planning.

The survey covered 3,000 households across 22 districts (excluding Killinochchi, Mullaitivu and Vavuniya, which could not be covered due to the conflict). Although the survey covered access to financial services in general, the objective was to determine the access to microfinance services and to identify barriers to access.

The results of the survey indicate that outreach of financial services in Sri Lanka is quite extensive, with over 82.5% of households having accessed financial institutions for their savings and credit requirements. However, significant disparities do exist across regions and sectors. The estate sector is identified as under-served relative to the urban and rural sectors. A key message that emerges from the survey is that Sri Lanka is essentially a microfinance market, with over 80% of households having total borrowings of less than Rs.100,000/-. Further, the role of the moneylender as a supplier of informal credit is not as significant as commonly perceived – the survey indicates that only around 20% of credit obtained by households from informal sources is obtained from moneylenders.

The report contributes to fulfilling a long expressed need for an encompassing picture of the outreach of microfinance services in Sri Lanka and should be a useful source of information for microfinance practitioners, policymakers, donors and other industry stakeholders.

The survey was funded by the German Federal Ministry for Economic Co-operation and Development (BMZ) and was conducted on behalf of its implementer, GTZ, by the Institute of Policy Studies (IPS), Colombo.

Copies of the report may be obtained from GTZ-ProMiS, 16th floor, East Tower, World Trade Centre, Colombo 1. Tel: 4963773/4, Email:

Source : ProMIS

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More