Sarvodaya joins the finance sector industry
View(s):By Bandula Sirimanna
The micro finance arm of SEEDS (Sarvodaya Economic Enterprise Development Services) has been transformed into a finance company to expand its lending portfolio, savings and deposits after receiving of Central Bank (CB) approval, a top official of Sarvodaya said.
SEEDS loan portfolio stands at Rs. 2.7 billion while cumulative loans outstanding topped Rs. 6.9 billion.
Deshodaya Development Finance Company Ltd (DDFC), the micro finance unit of SEEDS will enter the finance business in March as the 47th licenced finance company in Sri Lanka, Dr. Vinya Ariyaratne, General Secretary and Executive Director of Sarvodaya told the Business Times.
This was confirmed by a senior CB official adding that DDFC received the finance company licence recently.
He noted that the CB has taken a decision not to give new licences in the next two three years unless they are absolutely necessary.
Dr. Ariyaratne revealed that Sarvodaya, an indigenous non-governmental organization implements unique poverty alleviation programmes raising the living standards of the poorest of the poor, helping them with micro finance facilities and consultancy services for their self employment projects.
“Most of our members are low income earners; we don’t generate enough funds to expand our loan portfolio. Obtaining this licence will help us raise money through savings schemes, fixed deposits and public offerings,” he said.
There are 1400 Sarvodaya societies operating countrywide, he added.
Targeting the poorest of the poor, over 1.5 million Sarvodaya members have saved up over Rs. 2.78 billion to date. But savings, on top of a handful of concessionary loans from foreign donor agencies and few local commercial banks, are barely sufficient to keep SEEDS lending machine ticking, he disclosed.
Sarvodaya was the first NGO to operate a modern micro finance programme in Sri Lanka under the name of SEEDS commencing from 1986. It works in 25 districts and is now profitable, contributing profits to the social welfare work of Sarvodaya.
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