Commerce and Management
Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/140
Browse
4 results
Search Results
Item Determinants of Financial Sustainability of the Microfinance Institutions in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya., 2021) Perera, H. S. C.Today microfinance organizations are facing a challenge with how to balance poverty alleviation mission and sustainability. Hence, the importance of the sustainability of microfinance organizations goes beyond the poverty reduction mission. This research study was meant to determine the influential factors of financial sustainability in microfinance institutions in Sri Lanka. Existing two theories: Welfare Theory and Institutionalist theory were tested in MFIs in Sri Lanka with cause and effect relationship between variables, and the researcher adopted a cross-sectional research design with quantitative approach conducted in a field setting. Financial self-sufficiency is the dependent variable and twenty independent variables were used to test the determinant factors of sustainability. It was found that, the loan officer productivity, MFIs age, organization type, the yield on the gross loan portfolio, and profit margin have a positive and statistically strongly significance at 1% significant level. These factors profoundly affect the determination of the financial sustainability of MFIs in Sri Lanka. Further, the interest rate was positive with 5% statistically significant level, and active borrowers were positive with 10% in determining the financial sustainability of MFIs. Operating expenses ratio and capital structure negatively affected with 1% statistically significant level, where portfolio risk at 30 days affected negatively at 5% in determining the financial sustainability. Moreover, other factors: average loan size, the percentage of female borrowers, MFIs size, cost per borrower, number of MFIs products, lending methodology, geographic locations, write off ratio, risk coverage ratio and MFI regulations did not have a significant impact on financial sustainability in Sri Lanka.Item Factors affecting on Lending Decisions of Microfinance Operation in Non-Banking Financial Institutions (NBFIs) in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Samarawickrama, S.; Thrikawala, S.This study investigates the factors that affect the lending decisions of microfinance operation in the Non-Banking Financial Institutions (NBFIs) in Sri Lanka. Microfinance sector of the country can be identified as an important sub-sector of the financial system. NBFIs operating in the micro-finance sector in Sri Lanka provide loan facilities for people who cannot obtain those facilities from formal banking system in Sri Lanka. Based on the people’s needs and expectations microfinance sector can be developed as a lucrative business while maintaining an effective financial and economic stability in the country. Many studies have showed that the lending organizations have been encountered with severe difficulties when recovering microfinance loans and facilities provided for the individuals and small groups. Therefore, studying such factors are highly important since they are directly related with the effective credit management by NBFIs. In the current study primary data will be collected from the credit managers of five NBFIs. Secondary data also collected from the sources like Central Bank Annual Reports and Company publications. The quantitative and qualitative techniques will be deployed when analyzing and interpreting data. SPSS statistical software has been deployed to analyze and interpret data that produce generalizations for the population. This research provides insight for the NBFIs and policy-makers in the financial system of Sri Lanka regarding factors that impact the lending decisions of microfinance operations in Sri Lanka.Item The Determinants of Microfinance Profitability: Evidences from Sri Lankan Microfinance Institutions(University of Kelaniya, 2012) Dissanayake, D.M.N.S.W.This study was undertaken with the objective of asserting the significant determinants of microfinance profitability in Sri Lankan microfinance institutions. This study is based on eleven microfinance institutions in Sri Lanka, within the period of 2005- 2010, which are practicing microfinance at present. In this study, profitability is measured by profitability and sustainability ratios. Determinants of microfinance profitability are measured by efficiency and productivity, financing structure and portfolio quality ratios. Profitability is measured by return on equity ratio, return on assets ratio, and profit margin ratio. Sustainability is measured by operational self sufficiency ratio. Efficiency and productivity are measured by operating expense ratio, personal productivity ratio and cost per borrower ratio. Financing structure is measured by debt/equity ratio. Portfolio quality is measured by writeoff ratio. Finally, the researcher intends to postulate that, the cost per borrower is a determinant for return on equity and operational self sufficiency. Besides, the operating expense ratio and write off ratios are determinants of return on equity, return on assets and profit margin. Observations of the debt/equity variable of the study imply causality for the return on assets and operational self sufficiency as a determinant of respective models.Item Effectiveness of microfinance for poverty reduction in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Weerasinghe, H.D.S.S.Microfinance, one of the widely accepted instruments for poverty alleviation throughout the world, has been used in Sri Lanka spanning for over several decades. Despite the long history and the large number of institutions microfinance services particularly to the poor, there is limited knowledge on the impact of micro finance on poverty reduction in Sri Lanka. This study intended to assess the impact of microfinance on poverty alleviation in Sri Lanka through Monaragala and Badulla districts and identify the influence of macroeconomic condition on the net impact of microfinance. Using above districts as the study area, this paper provides valuable insights into micro financing in a developing economy context. Microfinance services in Sri Lanka have a wide geographical outreach but the extent of outreach of private operators including Non-Government Organizations and commercial banks are rather limited. So from this paper analyze whether the most rural areas in Sri Lanka can be developed through microfinance. Information of microfinance institutions, Monaragala and Badulla regional officers, householders used to analyze the real impact on microfinance for poorest people in Sri Lanka. Descriptive statistics and one sample t-statistics revels that microcredit facilities help these beneficiaries to move for higher income ladders and though the nominal income of the beneficiaries has increased macroeconomic condition prevailed in Sri Lanka hampered the real benefit.