Abstract:
Empowerment has been identified as one of the key objectives of micro-finance programs
(Lairap-Fonderson,2002; Khandker, 1998; Kabeer, 1998). Hence, this paper mainly examines the
effectivenessof microcredit programsin empowering women borrowers under the Negombo Urban
Development Program. Thus specific objectives of the study are women's access to financial
resources, household decision making power, controls over loans, family relationships and
participationin social activities.
Despite emergence of many MFls in Sri Lanka, limited studies have been done in this
country on impact of micro-credit affecting empowerment of women. Furthermore this study has
attempted to explore the effectiveness of micro-credit program on empowering women borrowers
underthe NegomboUrban DevelopmentProgram.
The sample size of 100 women respondents was employed in the survey and along with
recognized survey methodology unstructured interview method was also used for the data
collection. Hence Focus Group Discussions and Key Informant Interviews were used to gather
qualitativedata which complementthe survey findings
The results are consistent with the view that participation of micro-credit programs has an
effect on women's empowerment. Furthermore, the study establishes that micro-credit programs
have an effect on women's lives in intra household decision making and access to finance, which
results in empowering the women in taking up social leadership with advanced awareness,
enhanced self-worth and self-esteem. However, the study recognizes the limitations to the
empowerment capacities of MFls who uphold financial sustainability and not paying substantial
attentionon socialsustainability.
The study concludes by advocating effectiveness of micro-credit on empowering women further
inviting the MFIs for better utilization of empowerment potentials of micro-credit programs to
reach the ultimate goal of poverty alleviation.Moreover the findings of this study have implications
formanagerial interventionsto promote empowerment as part of microfinance programming
