German support for microfinance expertise

TRAINING:Twelve staff members from the Institute of Bankers of Sri Lanka (IBSL), the National Institute of Business Management (NIBM), the Sri Lanka Business Development Centre (SLDBC), and PASS Research & Consultancy Private Limited started a two week training of trainers course (ToT) at the Sri Lanka Foundation Institute on selected microfinance issues. This course will be followed by a series of capacity building measures over the next two years.

The ToT was carried out following an initiative of the project “Promotion of the Microfinance Sector” (ProMiS) by Indian based EDA Rural Systems Private Limited, which is one of the leading development sector consultancy, research, and capacity building organization in the region.

ProMiS is a bilateral Development Co-operation programme implemented by the Sri Lankan Ministry of Finance and Planning together with German Technical Cooperation (GTZ) on behalf of the German Government.

The goal of the programme is to enhance and improve the services of Microfinance Institutions (MFIs) to the poorer sections of society in order to ensure the long term sustainability. The program applies a wide range of capacity building instruments to strengthen the Sri Lankan microfinance industry and to gradually integrate it into the financial sector.

Against this background, ProMiS has selected the four Sri Lankan institutions mentioned above to enter into a comprehensive capacity building process. Over the coming two years selected staff of these institutions will receive various kinds of trainings and exposures in microfinance.

Starting point was this two weeks lasting ToT on delinquency management, interest rate setting and accounting for Microfinance Institutions (MFI). Two similar courses will follow over the next months. The courses have been designed by Washington D.C. based CGAP, a multi-donor trust-fund and standard-setter in the microfinance sector.

Moreover, GTZ-assisted ProMis presently negotiates with NIBM and German based “Frankfurt School of Finance and Management” to design a joint Certificate Course for managers of Microfinance Institutions.