LMFPA enlightens stakeholders on importance of financial literacy in Badulla

Many microfinance institutions (MFIs) that are engaged in microfinance claim to be social enterprises striving to eradicate poverty in the regions they operate. The mission and vision statements of a majority of microfinance practitioners highlight this.

Needless to say, almost every beneficiary of these MFIs is educationally malnourished and therefore financially illiterate too. Therefore it becomes an inherent responsibility of an MFI to educate its clients on sound financial principles. It is also a duty of an MFI to adhere to principles that protect its clients from malpractices and over indebtedness.

Therefore Lanka Microfinance Practitioners’ Association (LMFPA) held another discussion forum on the 12 October 2012 in Badulla on the theme ‘Financial Literacy and Client Protection in Microfinance.’ The resource person for the discussion was one of the pioneers in the sector and the present Assistant Secretary to the Director Board Bisowela Gunasekara.

President of the Association Channa Jayatilleke and Secretary Imran Nafeer were also present at the discussion panel. The response towards the discussion was overwhelming from the stakeholder organisations in the Badulla region as it was attended by more than 70 participants representing state banks, commercial banks, finance companies, community based organisations and microfinance institutions.