Project profile — Support to Establish an Entrepreneur Financial Centre in Sri Lanka

• Sri Lanka (100.00%)

• Post-Secondary Education: Advanced technical and managerial training (11430) (15.00%)
• Banking And Financial Services: Formal sector financial intermediaries (24030) (30.00%)
• Business And Other Services: Business support services and institutions (25010) (25.00%)
• Industry: Small and medium-sized enterprises (SME) development (32130) (30.00%)

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (not targeted)
• Participatory development and good governance (not targeted)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (not targeted)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Indigenous Issues (not targeted)
• Disability (not targeted)
• ICT as a tool for development (not targeted)

This project aims to increase the capacity of the SANASA movement (the largest cooperative credit association in Sri Lanka) to provide tailored financial and non-financial products and services to micro, small and medium enterprises (MSMEs) in four selected value chains. Of the new MSMEs targeted, at least 40% will be led by women. Project activities include: (1) establishing an Entrepreneur Financial Centre; (2) providing smallholder producers and micro-entrepreneurs with non-financial services such as training and sector-specific technical advice; (3) developing or adapting specialized financing products for MSMEs; (4) linking MSMEs in selected value chains to large-scale enterprises and end users; (5) convening co-operative sector actors (e.g. through workshops, roundtable discussions) and drafting an advocacy policy on the role of the cooperative sector in supporting MSMEs to be shared with the regulatory authorities.

The expected outcomes for this project include: (1) improved financial and management capacity of smallholder producers and micro-entrepreneurs, particularly women, in targeted value chains; (2) increased provision by the SANASA movement of adapted financial and non-financial services to existing and new MSMEs; and (3) increased recognitions by the Sri Lankan authorities of the cooperatives contribution to effective MSME finance.

Results achieved as of March 2021 include: (1) 7,364 entrepreneurs and smallholder farmers (of whom 5,135 are women) received training to increase their management capacity; (2) 4,357 smallholder farmers bought insurance policies, including 1,121 women home-gardening entrepreneurs; (3) thirty-three events for stakeholders organized in the banana, pepper, rice and tourism value chains with participation from local authorities. These events allowed SANASA’s (the largest cooperative credit association in Sri Lanka) partners to share knowledge and advocate for access to financing for small- and medium-sized enterprises, including those owned by women.

• Proactive disclosure