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| Monday, 4 August 2003 |
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Kahawa special correspondent The International Workshop on Issues and Challenges of Micro-finance was held recently at the Coral Gardens Hotel, Hikkaduwa. The chief guest was Kingsley T. Wickramaratne, Governor, Southern Province and the guest of honour was A.S. Jayawardane Governor Central Bank. Governor, Wickramaratne in his keynote address said,"The rural poor in Sri Lanka are not so poor. They have their skills in their own projects. They have a heritage. They influence the 'Environment Management' in the areas they live. All what they need is capital in the form of small loans micro-finance delivered at their doorsteps". Small loans should be on reasonable terms in order to finance additional income generating activities", he said. It is an effective and efficient way to develop rural economies. But in an Open Economy, it is not easy for micro-economics to survive. They might get all the finance they need, they may possess the best technological know-how backed by skilled labour, but if they are unable to sell their products, they would collapse", he said. Remember, nothing happens in the country until something is sold", he said. When something is sold, then only the economy runs, increases production, creates greater job opportunities and raises the standard of living", he stressed. As a result, any micro-finance package must be accompanied by a solid micro-marketing programme using Information Technology as a value added tool", he said. "I am happy to say that SEEDS - Sarvodaya Economic Enterprise Development Services is fulfilling this need in rural villages of Sri Lanka", he said. A.S. Jayawardane, Governor Central Bank speaking on, the "Role of Micro-Finance in Rural Development", said that, "the importance of credit for rural development had been long recognised in Sri Lanka. Co-operative credit societies at village level were set up by the then colonial government to cater to the credit demand for development of rural agriculture micro-enterprises and to promote thrift among rural households", he said. However, they could not make a significant impact on the rural finance scene and after about two decades the "Consumer Co-operatives" took the stage relegating the credit co-operatives to unnoticeable level. Realising the importance of institutional credit in the drive to achieving self-sufficiency in food supply the Government began providing financial services at the grass root level by recognising some Government departments to distribute Government funds on credit basis among the farmers at subsidised rate of interest in late 1940's. Realising the incapacity of Government Departments to handle credit and recovery of loans, the Government entrusted this responsibility to estate owned banks, and co-operative rural banks (CRBS) in the first half of 1960s. With a view to ensuring a greater access to cultivation loans by farmers, the Government insisted that the State Banks opened branches in rural areas, he said. The cultivation loan scheme, namely the new comprehensive Rural Credit Scheme which remains the largest micro-finance program even today is implemented through State Commercial Banks, and a few private sector banks which volunteered to implement the program", he said. In these circumstances, the Sarvodaya through its SEEDS program has rendered a yeoman service to uplift the rural economy in association with the rural populace through various development programs is commendable", he said. |
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