Micro Credit Scheme - Galle

About 15 years ago there was extensive flooding in Sri Lanka that left many families homeless and without a livelihood. A doctor named Yasa Siriwardena and some of her colleagues and friends bought blankets and household items for affected families. Out of this grew an organisation called IVFA Sri Lanka (International Volunteer Friendship Association) which includes Mr Wajira Abeywardena – MP for Galle, on the management committee.

IVFA have been involved in the Galle district setting up micro credit schemes to help families get back on their feet after the tsunami. After assessing applications from local Women’s Associations the IVFA committee decides who is most deserving of a loan. These loans are only given to women (who are more likely to ensure the money gets spent on the family and not on Arrack – the local liquor!) The women must provide proof of having had a business prior to the Tsunami and those with the youngest children are generally selected first.

They are each given a loan of 5,000 Rupees (about £23) and have 6 months before they need to make a payment. After 6 months they can pay back in instalments but need only pay back 50% of the loan. There are some people on the loan scheme who were not affected by the Tsunami and they are obliged to pay back 100% of the loan. The women are required to take their children to the banks when depositing their repayments as IVFA are determined to teach the next generation the value of saving and to teach them how the banking system works. The money for the loans is provided by donations made by Epiphany Trust in the UK, partnering with ‘Hands Across the Sea’ in Liverpool who then send the money out to IVFA.

This IVFA member has a fruit stall in the very busy Galle Bus Station Market. Fortunately for her it was a holiday on the day of the Tsunami when the bus station was completely devastated. Water was up to the rooftops and buses were swept away into adjoining streets. With the money received from the IVFA loan she was able to buy some stock and restart her business. She told me that it now provides enough to feed herself, her daughter and her husband.

There are many similar stories and as small as a £23 loan sounds, in Sri Lanka it can go a long way to helping someone get back on their feet and we are constantly amazed by people’s determination to get away from living off hand-outs and return to being self sufficient. Through Epiphany, IVFA have helped nearly 500 families (a small selection of case files are detailed through the link below), but there are many more still out there waiting for much needed help.

Micro Credit - Case Files

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