Exploring the Financial Literacy Programmes Delivered by the Sri Lankan Micro Finance Institutions: A Case Study Approach

Abstract

Global Financial Literacy Survey done by the Standard & Poor’s Ratings Services reveal that in 2014 only 35% of adults are financially literate in Sri Lanka. There is a dearth of researches covering this critical area using a qualitative approach. Thus, the purpose of this paper is to focus on the critical, yet an under-researched dimension of MF, the intercession of MFIs in delivering FL to the MF clientele focusing on the profiles such as delivering channels, importance, constraints, and strategies to address. Multiple case study method was used as the research method. The data were gathered from a purposive sample using in-depth interviews. The findings show that several channels of delivering FL; social mobilization programmes, seminars, training programmes, community committees, and credit societies, and the importance of delivering FL are; enhancement of human capital, the sustainability of industry and firm, upgrade new venture survival, client protection, and social and economic empowerment and development. Further, the barriers to delivering FL; budget, industry competition, inactive participation, clients’ attitudes, inactive regulatory bodies’ contribution, and external barriers were investigated with the strategies adopted in addressing barriers; community awareness, motivational strategies, regulatory framework and cost addressing strategies. Findings of this study have implications for policymakers in paying attention to make a financially literate clientele in the MF discipline.