Samurdhi contributes to poverty alleviation

Anushika Ranadewa

The micro finance sector has been strengthened in the country in the last two decades to protect the poor and the Samurdhi Banking Society engages in a crucial task in poverty alleviation through this.

The Samurdhi Authority has been working together with the Micro credit Campaign from 2005 to reach the poor and formulate financially autonomous institutions to guarantee a positive impact on the lives of the clients and their families.

The International Micro finance Summit Campaign Report 2013 indicates the state of poverty and comments of people below the poverty-line towards micro finance services.

Sri Lanka also facilitated to prepare the report by providing information about micro finance measures that the Samurdhi Authority has taken.

Sri Lanka stands high among Asia-Pacific nations in this regard. In 1955, 26 percent families lived below the poverty-line. However, currently it has decreased to 8.9 percent.

The micro finance services under the Samurdhi Banking Society have contributed a great deal towards this achievement.

There are over 1,072 Samurdhi banks covering 25 districts in Sri Lanka.

The micro finance services include, savings accounts for low-income people including women and children, loan facilities up to Rs. 500,000 for an interest rate of 8 percent under flexible terms and conditions, loans up to Rs. 75.000 for small-scale farmers, quick loan facilities for emergency client needs, housing loans up to Rs. 100,000, housing loan facilities up to Rs. 25,000 for 10 percent interest rates for middle-east worker families, loan plan named Widuli Athwela for low income families without electricity and loans for youth to engage in vocational training.