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Lankan women responsible for 80% microfinance with zero NPLs

Out of the microfinance borrowers over 80% of them are women, said Pres­i­dent Lanka Mi­cro­fi­nance Prac­ti­tioner’s As­so­ci­a­tion (LMFPA), M.M. At­tanayake.

He said most of these borrowing are for self employment projects and the pay back is very satisfactory. “Vertually there are no NPLs.”

“Microfinance is open to people who don’t have collateral to go into banks and we operate on two guarantors and this system is working very well,” he said. However the penetration is still around 80% and there is a lot of scope for the microfinance sector to grow. He said that for a long time they were looking at new legislation form the government to increase investment to this sector and also for some of the companies to accept deposits.

“We have asked the new finance minister to look in to this issue and introduce the much needed reforms for the industry to have a boost al­low­ing mi­cro­fi­nance op­er­a­tors to in­tro­duce some new prod­ucts such as mi­cro­fi­nance in­surance.”

“Now LMFPA is looking to receive mcro insurance regulations, access to CRIB and more which area also fundamental requirements of the industry to serve poor and low income people. We have to in­tro­duce some com­mer­cial fi­nance ac­tiv­i­ties. We have to make sure ca­pac­ity build­ing is en­sured for the suc­cess of the in­dus­try,” the LMFPA Pres­i­dent said adding “We also see a demand for micro finance from the North and East.”

Sec­re­tary Imran Nafeer said that they are now diversifying to offer credit to housing sector as well. He also said that today financial inclusion in Sri Lanka is around 82% and there is a lot of room to expand.”

LMFPA has 71 member organisations representing NGO’s, Not for Profit Companies,(NPC) Cooperatives, MFI companies, banks, finance and leasing companies, capacity development institutes and individuals dedicated to the industry.

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