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.