SDBL goes for 'micro justice'

Sanasa Development Bank Ltd (SDBL) has revolutionised the micro-finance sector by introducing 'micro-justice', which provides people legal education to deal with livelihood problems.

The Bank has set up centres to assist people, especially among rural communities to ensure that they do not become victims of injustice. The Bank's aim is to empower the rural poor who do not have access to financial services.

Sanasa Group Founder and Chairman, Dr. P.A. Kiriwandeniya said that micro-justice plays a pivotal role in empowering people with knowledge and confidence to carry out their occupations effectively. “People in the rural sector face many legal problems such as land issues. They fall victim to the rich and influential class due to lack of legal knowledge.

The Bank educates people on business laws to face legal issues confidently and carry out their occupations effectively,” he said. A hallmark of the Bank has been its ability to mobilise financial resources of the urban-based rich and transferring it to rural areas where poverty is high.

The Sanasa Development Bank is a pioneer in providing micro finance services which has helped narrow the wealth gap and boost economic growth in the country.

The SDBL was founded, based on the Sanasa Movement which consists of around 8,500 community and primary level societies. “We needed a financial and business arm based on the Sanasa community,” Dr. Kiriwandeniya said. SDBL which operates around 88 branches across the country was set up by a Banking Act, in 1997 with the objective of providing micro credit and to address financial needs of low income groups.

The Bank provides saving facilities for people who are away from cities and assists people to be familiar with the banking system. The Bank helps mobilse savings. “Rural resources were siphoned out from villages and invested in cities to boost trade.

“The Sanasa Development Bank mobilises resources in cities such as Colombo, Gampaha, Kalutara and Kandy to invest in the North and the East, Uva, Sabaragamuwa and Moneragala districts where poverty is high,” Dr. Kiriwandeniya said. SDBL recognised the importance of micro insurance to protect SME entrepreneurs. Sanasa Insurance Company Ltd, the insurance arm of the Group has schemes for low income households.

“One of the key problems faced by the rural poor is that they do not have proper financial services. There is no insurance industry in rural areas. People think it is a luxury. There is no proper market for their products and as a result a large quantity of the produce is wasted,” he said.

The Bank encourages value-added production. It provides loans for modernisation of home gardens, cottage industries, farms and livestock. SDBL encourages people to develop land for cultivation and promotes crops which could be exported.