Impact of Microfinance on Multi-dimensions of the Women Empowerment: A Case Study of Southern Sri Lanka

Abstract

This paper examines the impact of microfinance programmes on women empowerment of borrowing households of Southern Province in Sri Lanka. The women empowerment is one of major target variables in Microfinance programmes which are intended to benefit low-income people and better way to achieve Millennium Development Goals including reducing poverty, supporting gender equity. The study is based on the sample survey of 405 microfinance recipients of four national level leading institutions: Thrift and Credit Cooperative Societies, Samurdhi Banking Societies, Ruhuna Development Bank and Sarvodaya Economic Enterprise Development Societies for 2017.For analysing purpose, a comparison group has been selected from the existing recipients whom membership duration with is no longer than one year to compare their empowerment capabilities with that of existing members whom membership duration with microfinance programmes is longer than one year. Three dimensions of women empowerment: economic, socio-political and well-being of the household are used for assessing the impact. Based on data analysis, the study found that outreach of microfinance towards women is remarkably higher and it has benefited to increase the number of women ownership-business in the Province. However, these women controlled enterprises are not growing but stable and evolving with the challenge of sustainability. Integrating these findings, in regional context of Sothern Sri Lanka, it can be concluded that although the microfinance has benefited the borrowing women to enhance the well-being of their households, other two dimensions of women empowerment: economic and socio - political have not been reach as it was expected.