Sri Lanka has a significant low-income population segment whose financial needs are served by an estimated 14,000 financial institutions in the country, which directly or indirectly provide microcredit products. However, a majority of these financial institutions are either financial NGOs, not-for-profits or organizations that follow a local cooperative structure. For-profit formal sector microfinance institutions are few, and the market is dominated by five or six players that serve the majority of the low-income customer segment. There is limited industry research on the country’s microfinance sector, and Intellecap has attempted to bridge this gap by presenting the following market opportunities and growth strategies, based on conversations with leading practitioners, policy makers and capital providers immersed in the Sri Lankan market.
This blog by Vasu Kangovi, Associate Vice President and Saurabh Sinha, Manager at Intellecap, was published by Next Billion. Vasu and Saurabh works in multiple impact sectors, namely financial inclusion, healthcare, agriculture and livelihoods, water and sanitation, and renewal energy across India, Sri Lanka, Bangladesh, Indonesia and many countries in Sub-Saharan Africa.