The Struggles of Microfinancing in Sri Lanka
The Problems with Microfinancing in Sri Lanka
Many individuals in Sri Lanka find themselves in a cycle of debt due to the high interest rates associated with microloans. This troubling trend is often hidden behind the promise of financial empowerment.
Impact on Borrowers
Microfinancing has led to significant financial strain for many, pushing them further into poverty instead of alleviating their economic difficulties. As these loans accumulate, borrowers face mounting pressure that can lead to severe consequences.
- High Interest Rates
- Debt Cycles
- Limited Support Services
Calls for Reform
Experts argue that the microfinancing system in Sri Lanka requires urgent reform. Ensuring fair practices can help those in need rather than trap them.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.