How Sarvodaya Development Finance is changing lives in rural communities

• A finance company with a unique business model 

In this interview, Sarvodaya Development Finance (SDF) CEO Nilantha Jayanetti elaborates on his journey with Sarvodaya and how the organisation’s unique business model has helped uplift rural communities:

Q: Would you elaborate on how the SDF business model differs in comparison to other models?

A: SDF is an organisation that has a deep rooted commitment to nation building and development along the ‘grass roots upwards’ model of our parent, the Sarvodaya Movement. We are the pioneers in microfinance in Sri Lanka and are fully-committed to serving the needs of the most needed rural community of nation by allocating a majority of our profits to these segments of society, which makes our business model very unique. We have about 1,500 active societies across the island and educate them on every aspect of running a business. 

Q:  Explain the SDF product portfolio; how is it unique?

A: Under the Savings category we have Regular Savings products designed to meet the needs of individual and corporate citizens while our Fixed Saver account encourages depositors to save money at a higher interest rate than regular savings accounts. Next, we have savings products for children – Daru Isuru and Pancha. Under Fixed Deposits, we have the 60*60 FD which was introduced to mark the 60th anniversary of Sarvodaya. Our Leasing products are offered for a wide range of vehicles. When it comes to Loans, we have Micro Loans, SME Loans and Personal Loans, all of which are processed within a maximum of two working days. We also have the Swarna Sahana Gold Loan facility that is widely used by some customers to meet urgent cash requirements. In order to build closer relationships with our customers we initiated a hotline 1319. 

Q:  You are currently a connoisseur in the industry, would you elaborate on your experience prior to joining SDF?

A: I joined as the CEO of Sarvodaya Development Finance SDF in November 2018. My expertise lies in the sphere of banking and finance, having served in senior management positions in reputed Financial Institutions. Before joining SDF, I was the Senior Assistant General Manager at Orient Finance PLC for seven years, where some of my key initiatives resulted in changing the way the industry operates and positioned the company as a top brand in the industry. I have always believed in bringing innovation and new thinking to the industry. I was instrumental in introducing the trade-in facility for vehicles where the customer brings in an old vehicle and drives away in a brand new one. Before that, I was Marketing Manager at Merchant Bank of Sri Lanka and Finance PLC (formerly Merchant Credit of Sri Lanka). 

Q:  When you reflect on your journey at Sarvodaya as the CEO, how has Sarvodaya influenced your leadership style?

A: Since I grew up in the Sarvodaya system I have a very good grasp of how things work here. I was born in Ampara and my first experience with Sarvodaya was when I went to a Sarvodaya pre-school. Alongside this school was the Sarvodaya playground from where I have numerous cherished memories. Today, as the CEO, I understand the owner’s vision as well as the prevailing market conditions, which puts me in a great position to drive the company forward. I am fortunate to have the opportunity to work with a wonderful team. I get the fullest support from my Board of Directors, Chairman and Founder while I must specially mention the exceptional team under me. They are young, smart and dedicated. As the CEO, my task is to execute the strategic direction of our Board of Directors. I have been able to maintain a good rapport with all stakeholders and clearly communicate the Vision, Mission and Strategic Goals. It is also important that the staff is happy. Work-life balance is critical and we implement innovative incentive schemes such as converting the rooftop of the Head Office premises into a restaurant, gym and yoga centre.  

Q:  How has the SDF’s innovation contributed in benefitting stakeholders?

A: Uplifting the lives of our customers is our main focus while keeping in mind sustainability and the environment. We have a very good understanding of real business entrepreneurs and community needs, for example, farmers struggle to make monthly traditional repayments on their tractors and loans for cultivation, which is why we have given them seasonal payment schemes based on their harvests along with technical inputs. Solar powered water pumps are a good example of this. Therefore, the relationship goes beyond a lease, a loan or a deposit – it’s a personal connection that enhances their business and their lives.

However, I feel the market is overregulated and we are compelled to limit our operations to comply with regulatory requirements. Although regulatory authorities introduce global best practices in Sri Lanka, some of these practices have curtailed industry growth and need to be realigned to the needs of an emerging economy.

Q: How can SDF evolve while remaining true to the Sarvodaya Movement?

A: Although the country’s economic and political landscape impacts the sustainability of the business, when we look at our business model and the core values of Sarvodaya, it is clear that we are not here only to make profit, but to conduct our operations in a professional, ethical manner and uplift the lives of less fortunate communities in Sri Lanka. Our focus is on empowering village-level SMEs. Sarvodaya has a very good reputation and people have no hesitation in dealing with us. We have 51 branches with the potential to open more with the view of supporting ‘Small Businesses with Big Dreams’.