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A picture of the Sri Lankan microfinance sector, which is on the threshold of a major transformation.Many factors contribute to the fact that microfinance in Sri Lanka is now highly debated in public.

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However, in some cases there is no significant or even negative impact.

This confirms the underlying hypothesis that different institutional settings such as lending methodology or target group focus are factors that influence impact.

Many actors provide financial services for the poor for various different reasons and with different methodologies.

This brochure will help to understand the sector and to define a set of criteria which are necessary for a sustainable microfinance sector that can help poor people to get out of poverty.

The survey also covered the rapidly growing NGO-MFIs some of which have grown very rapidly in the past decade.

The results of the survey indicate that although the outreach of microfinance services in Sri Lanka is considerable, this is especially so with regard to savings and deposit products.

Lanka Microfinance Practitioners Association (LMFPA) initiated and facilitated the assignment.

The main objectives of the study are to review existing laws & regulations and analyse their implications for the development of the Sri Lankan Microfinance sector and to review ongoing legislative proposals (e.g.

This report provides a comprehensive review of the existing legislation related to the Sri Lankan Microfinance sector.

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