IMPACT OF MICRO FINANCE ON WOMEN’S EMPOWERMENT EVIDENCE: FROM ANURADHAPURA DISTRICT IN SRI LANKA

Abstract

"The present study aims to analyse the impact of microfinance on women’s empowerment in the Anuradhapura District of Sri Lanka. For the analysis purpose, microcredit, micro savings, and microinsurance are the measures of microfinance that serve as independent variables influencing women's empowerment, which is measured by decision-making power, income generation, education, health, and well-being. Guided by Empowerment Theory, the research employs a quantitative approach, utilizing a structured questionnaire administered to 150 women beneficiaries selected through stratified random sampling across three divisional secretariats: Madawachchiya, Mihinthale, and Rambewa. The data were analysed using Partial Least Squares–Structural Equation Modelling (PLS-SEM) to examine the structural relationships between microfinance services and empowerment dimensions. A structured questionnaire was used to gather data from the women beneficiaries of the microfinance program across three divisional secretariats: Madawachchiya, Mihinthale, and Rambewa. The study's findings reveal that microfinance plays a significant and positive role in improving women’s empowerment. Among the microfinance components, microcredit and micro savings emerged as the key drivers, enhancing financial independence and household decision-making. The findings emphasise that while microfinance facilitates economic empowerment, persistent socio-cultural and institutional barriers limit women’s full autonomy. The study highlights the importance of integrating financial services with financial literacy and social inclusion programs to ensure sustainable empowerment outcomes. The results provide valuable insights for policymakers, financial institutions, and development agencies seeking to strengthen gender-responsive microfinance frameworks in Sri Lanka.