Microfinance and Shelter: An Impact Assessment of Microfinance on Improving Housing Conditions of Rural Sri Lanka

This paper examines the impact of microfinance (MF) programmes on improving the shelter conditions of beneficiary households of Southern Province in Sri Lanka. The ownership of conditional house is one of key indicators measure fulfilling the basic needs of a household on the one hand and healthiness of it on the other. The study is based on the data and information gathered from a sample survey of 405 microfinance recipients of four national level leading Microfinance Institutions (MFIs) in Sri Lanka for 2017. These include: Thrift and Credit Cooperative Societies (TCCSs), Samurdhi Banking Societies (SBSs), Ruhuna Development Bank (RDB), and Sarvodaya Economic Enterprise Development Societies (SEEDS). For analysis purpose, a comparison group has been selected from the existing MF recipients whose membership duration with microfinance (MF) is not longer than one year to compare their shelter status with that of existing MF recipients whose membership duration with MF programmes is longer than one year. Three indicators: size of living space, conditions of the house, and current market value of a dwelling house are used for assessing the impact. Based on the data analysis, the study found that Microfinance has benefited the Borrowing Households (BHHs) to improve their shelter status in terms of all the indicators of housing conditions (except roof condition), size of living space, and market value of a dwelling house.