Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

In the backdrop of the government's concentration on the SME sector of the economy the Department of Census and Statistics has launched a macro analysis of Micro Finance Institutions (MFIs) in the country.

The first census on MFIs in Sri Lanka launched by the National Account Division of the department early this month is now under way. The Department has appealed to all small and medium financial institutions to assist department officials by submitting correct information.

Despite failures and defaults of even large financial institutions and regular warnings of the Central Bank of unregistered financial institutions, people at large deal with informal financial institutions.

Farmers, fishers and other small and medium industrialists and traders are highly dependent on SMFIs for their financial needs. These institutions enjoy better rapport with the masses and their terms and conditions are attractive. Simultaneously high risk and higher interest rates are associated with financial services of these institutions.

The census will cover all MFIs and collect data for a detailed analysis of the sector, said Director, National Account D. Amarasinghe. He said that the SME sector's contribution to the national economy is 50% and most of these SMEs get financial assistance from MFIs in the country.

Though we have details and proper monitoring of Banks and other financial institutions we have neglected this vital sector of the economy. To strengthen the national economy, we have to strengthen the MFI sector. Identifying problems faced by MFIs and formally organising the sector is a timely need. Giving a guarantee to the depositor's money is also essential. For all this we need information of the sector, he said.

The census will cover all government, private and NGOs that are involved in micro finance activities. Distribution of financial activities, assets and liabilities, sources of funding, number of employees and problems faced by MFIs will be collected during the census.

Formal financial institutions which come under the supervision of the Central Bank are excluded from the census.

However, a complete list of MFIs in the country is not available to be used as the census frame. The department will update MFIs list of institutions of National Development Trust, German Technology Co-operation, Sanasa, Samurdhi and Sarvodaya Societies to use as the census frame.

The census information is sought under the Statistics Ordinance as amended in 2000 and individual information will be treated as strictly confidential, the Department said. The project is funded by the Asian Development Bank.

(GW)

Job Opportunity - Jarir Marketing Co.

| News | Business | Features | Editorial | Security |
| Politics | World | Letters | Sports | Obituaries | Junior Observer |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.