Managers’ Perception of Financial Inclusion in Urban Low-Income Families in Sri Lanka Managers’ Perception of Financial Inclusion in Urban Low-Income Families in Sri Lanka

Abstract

This paper aimed to examine the impact of manager perception on financial inclusion among low-income populations in urban Sri Lanka. To achieve the objectives, data was collected from forty-two bank managers from the Colombo and Kolonnawa divisional secretariat. The Partial least square structural equation modelling analyzed the data. According to the study managers’ perceptions of age, income, and occupation positively affected financial inclusion. However, their perception of education, financial awareness, Residence, and bank history do not significantly impact financial inclusion in urban low-income families. The study also identified that most bank branch managers had overall negative attitudes regarding poor people, especially when it comes to loan provision. Bank managers believed that lending to the poor carries high risks, and nearly all associated the poor with high-level loan diversion. Therefore, the study suggests that authorities take necessary steps to introduce easy loan schemes for the urban poor and a follow-up mechanism should be established to ensure the effective utilization of loans. Besides, financial awareness programmes should be carried out to make them aware of possible, and affordable financial products and services