April 21, 2009

Although the micro- finance industry has shown impressive growth and a degree of resilience in the recent past, the pause in global growth momentum under the current financial crisis might have a negative impact in the near future, said Director, Centre for Banking Studies, Udeni Alawattage.He was speaking at the inauguration of the four-day International Seminar on “Microfinance for inclusive Development and Sustainable Growth” at the Centre for Banking Studies Rajagiriya yesterday.

Under the current global financial turmoil, market signals on funding for microfinance are clearly indicating a tightening as money will become more scarce, more conservative and more costly and based on the recent experiences some clients may understandably worry about the safety of their life savings and decide that the mattress is safer, he said.However, this phenomenon, both positive and negative, provides an opportunity for micro finance professionals.