Women from six districts continue Satyagraha against ‘micro-finance’ crisis

Dozens of women from low-income families from six districts continued a Satyagraha at Hingurakgoda in Polonnaruwa for the 32nd day yesterday, demanding President Gotabaya Rajapaksa to fulfil his election pledge to scrap the micro-finance loans.

The Satyagraha was being led by women from Batticaloa, Vavuniya, Mullaitivu, Kandy, Anuradhapura and Kurunegala, who had been left helpless due to the predatory loan scheme. The micro-finance loans, according to social activists -- had already caused more than 200 suicides across the country. Women at the Satyagraha also revealed that they were being intimidated by thugs and debt collectors who visited the villagers, utilising illegal recovery methods including demanding sexual favours.

Ms.anuka Vimukthi of the Movement for Land and Agricultural Reform (MONLAR) said, “In October 2019, then-presidential candidate Mr.rajapaksa promised to scrap the microcredit loans, which are causing acute problems to the people. However, he is now silent.”

According to her, they had submitted a detailed report regarding the victims of microfinance crisis to the Central Bank, following instructions from a government official. Yet, they were yet to receive a response from the CBSL.

According to Financial System Stability Review 2020, CBSL stated that the NPL ratio of micro-finance loans continued to increase from 2017 and reached 30% at the end of September 2020 from 17.3% at the end of September 2019. The NPL = non-performing loan is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full, it is said.