Role of Micro Finance in the Empowerment of Women in Sri Lanka

Abstract

The microfinance is a tool for empowerment of poor people which could contribute for the development of the economy. In recent years, women are playing a big role in the economy. This research tries to examine the role of micro finance for the empowerment of women in Sri Lanka. For the analyses, data were collected using a questionnaire distributed among the randomly selected beneficiaries of micro finance in the Polonnaruwa district in Sri Lanka. Most of the women started their business by taking loan from Micro Finance Institutions as compared to other sources. They were able to increase their income and provide not only with the financial help to their families but also had a positive impact on other factors of daily life. These poor women brought about a positive change to their financial and social situation and started taking active part in the decision making process of the family and society. The research findings conclude that there is a significant and the positive relationship among the loan amount and the monthly income level of the beneficiaries in micro finance. And also there is a significant relationship between the success of the business and the loan amount generated by Micro Finance. The results obtained from the analysis, reveals that microfinance schemes are highly influential in build social and economic empowerment in women.