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Heeding to the cry that the Jaffna entrepreneur needs to have more access to ready cash for the region's economy to prosper, the People's Bank has launched a program to better reach out to potential customers in the Northern Province.

The German government-supported Rural Banking Innovations Project (RBIP) of the People's Bank conducted a training workshop in May for the staff of the bank's Jaffna branch to sensitise them and to upgrade their capability to approach Jaffna entrepreneurs.

"We all know what the entrepreneurs in Jaffna need most is money to set up their business," said Sivapathiviruththayar, Regional Manager of the People's Bank Jaffna. "This sort of training to our staff will enable them to mobilise more cash within the business community, which in turn will see a resurgence of economic activity in Jaffna," he said.

During the workshop, participants learnt how to use networks to find customers and information about them. They also learnt details about "People's Fast," a commercial tailor-made micro loan product introduced by RBIP.

The Rural Banking Innovations Project, a cooperation between the People's Bank and the German Technical Cooperation (GTZ) on behalf of the German Ministry for Economic Cooperation and Development (BMZ), was set up in 1996 to support the Bank to re-orient itself towards commercial lending activities for micro, small and medium enterprises (MSME).

"Very soon we will start to visit our clients," said G. Satkunabalan, Kayts Branch Manager of the People's Bank Jaffna. The People's Bank, with the consultative support of the RBIP, will take the lead, in providing commercial credit facilities for start-ups, expansion of businesses and investments. This will help a lot of potential enterprises to set up their business."

According to Armin Hofmann, Principal Adviser of the RBIP, commercial microfinance is most suitable to enhance economic development because it creates employment.

This also contributes to the promotion of economic diversity especially within the north and east. This approach follows the strategy developed by the Government highlighted in its programs such as 'Regaining Sri Lanka' and 'Connecting to Growth.' RBIP's target is to improve the access of MSME to formal financial services on a cost-covering basis for the bank's branches.

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