Sri Lanka

Pilot project to introduce small loans at the savings bank of Sri Lanka

Project description

The cooperation with the NSB dates back to 1983/84 and started with the introduction of a pilot project to extend small-scale loans to farmers and craftsmen in the rural area of the Matara district in the south of Sri Lanka. Within the scope of this pilot project, NSB tested a new system of customer service, for the first time allowing the bank staff to do business on site in the rural areas of the district. Despite political upheavals and economic setbacks, this project turned out to be very successful with a significant increase in mobilised savings and extremely high rates of repayment of extended loans.

Plans to extend the successful launch of this loan scheme to the Kandy district failed, because the Government of Sri Lanka – based on recommendations by the World Bank – curbed NSB’s business actions to the mere collection of savings, like in former times. 

Services provided

• Consultancy in the area of lending business
• Support to the pilot project to extend small-scale loans in rural areas