Financial Performance of Microfinance Institutions in Sri Lanka

Abstract

The microfinance indrstry has developed from a history Of microcredit programmes. Today it has grown to cover a broader range Of products and services, from credit and savings, to insurance and money transfers. Many speck in more general terms Of miarofimance as the provision Of financial services to those excluded from the .formal financial system. When providing these financial services and enhancing clients ' reliance MFls have to show fimancial performances corttinuously. This, this paper attempt to measure the fuiancial performance Of leading MFls in Sri Lanka based on key financial performance indicators and to compare them within the sample and with industry averages. Findings Of the paper reveal that where sample REls are playing in the industry and the barriers to be moved up to the accepted levels in the hand Of financial performance.