Microfinance in Sri Lanka was introduced in 1911 through the Thrift and Credit Cooperatives with the enactment of the Cooperative Credit Societies Ordinance. The sector grew most rapidly during the last 20 years when microfinance, as an vital instrument to reduce poverty, gained the attention and support of both the government and funding agencies.

The current landscape of microfinance is cluttered with a vast array of government interventions and donor-funded projects that impede commercialization, while private sector initiatives and grassroots organizations provide microfinance as a way of encouraging poor rural households to commercialize agriculture, start small businesses, and create savings groups. But still there are huge client to get the services of Microfinance.

Figures in million

Population Demographics					MF Demographics
Country	Total Population	Below Poverty Line (%)	Rural (%)	Urban (%)	Estimated # MF Clients	Currently Served	Served (%)
Sri Lanka	19	25	83.90	16.10	2.43	0.94	38.49

Status of ASA International in Sri Lanka:  ASA international owns more than 90% share capital of a non-banking financial institution namely ‘Lak Jaya Microfinance Limited. Lakjaya has been established in 2002 and at present, it is one of the biggest MFIs in Sri Lanka. ASAI started to invest, since February 2007, using it a strong platform to fight the poverty in Sri Lanka.

Operational Coverage

At present, Lakjaya Microfinance Ltd. is working in mainly five districts. It has the plan to expand the coverage gradually in upcoming future.

Source of Fund: Shareholder’s equity

Performance Up to December 2010

Performance (started lending in February 2007)

Contact: samad@asa-international.com