Microfinance and Multiple Borrowing in Sri Lanka
Another Microcredit Bubble in South Asia?
Tilakaratna, Ganga
creator
Hulme, David
text
xxu
monographic
eng
ENG
In recent years, there has been an increase in multiple borrowing in the microfinance sector in Sri Lanka, while many microfinance institutions (MFIs) have experienced high levels of borrower turnover, deteriorating portfolio quality and weak financial performance. This has raised concerns about the microfinance sector. However, the debt levels for the majority of borrowers remain at moderate levels, while a number of mitigating factors such as mobilization of borrower savings by MFIs, wide use of pawning among clients and a reduction in donor funds to the sector suggest that a microcredit bubble in Sri Lanka is unlikely in the near future.
Microfinance
Multiple
Borrowing
Credit
Bank
Sri Lanka
South Asia
IPS
SAEJ
March 2015
46-63
151014