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Microfinance



Gami Pubuduwa Scheme (Village Awakening Scheme)

In 1989, the Bank commenced providing services to those at the bottom of the economic pyramid by launching the first ever micro finance programme, now globally known as "Gami Pubuduwa". In the last two decades, HNB has opened its doors to more people in more places, particularly Sri Lanka's rural areas, providing access to Micro-savings, Micro-lending, Money transfer services and, of late, Micro-insurance.

The intent of the GP Scheme is to extend credit facilities, along with a package of banking facilities, to the rural community. The scheme constitutes rural savings mobilisation and social development alongside extension of credit.

The intent of the GP Scheme is to extend credit facilities, along with a package of banking facilities, to the rural community. The scheme constitutes rural savings mobilisation and social development alongside extension of credit.

The Gami Pubuduwa microfinance scheme assists any income generating self-employment activity up to LKR 1 million, with a maximum repayment period of 4 years. There are 108 Gami Pubuduwa banking units operating throughout the country, with most units stationed in rural areas.

The Gami Pubuduwa scheme has become one of the most successful microfinance programs implemented by a commercial bank and is highly acclaimed by local and international agencies. With time, the Bank has tailored the scheme not only to ensure that it meets the social and economic needs of the country but also that it continues as an economically sustainable project.

HNB has also been involved in organising trade fairs to establish market linkages for the products of Gami Pubuduwa clients and introduced modern technology by linking expert organisations with borrowers to improve product quality.

The core objectives of the Gami Pubuduwa (Village Awakening) programme:

  • To develop a sustainable programme which will give new orientation to the development of the rural community and encourage participation in rural awakening and regeneration activities by identifying their strengths, weaknesses and resources available and offering financial assistance as appropriate
  • To give an opportunity to the thousands of village folk who have hitherto considered banks as places inaccessible to them, to obtain financial and other assistance
  • To develop a close relationship and eliminate the ‘barrier’ between the villagers and the Bank, promoting economic activity
  • To assist the village community in getting involved in the economic progress of their villages and encourage them to move towards more productive activities by evolving a practical Rural Credit Delivery and Savings Mobilisation system


Gami Pubuduwa Upadeshaka

The Gami Pubuduwa Field Officers are at the heart of the project, incorporating themselves into the village community and acquiring first-hand insight into the lives and activities of rural society. Performing the roles of financial advisor and support person, these 'barefoot bankers' participate in social, religious and cultural activities in the village and build a sturdy relationship between the Bank and the community. By closely associating with the rural community, they are able to identify its strengths and weaknesses and make suitable financial proposals to promote successful micro entrepreneurs.

The Gami Pubuduwa Field Officers play a vital role in disseminating financial information and spreading awareness. Financial literacy is extended not only to the business community, but also to families (housewives, children, senior citizens, etc.), equipping the entire rural population with knowledge on how to better manage their finances.

The responsibilities of the Field Officer are to:

  • Identify GP customers
  • Undertake Credit Evaluation of GP loans
  • Supervise the progress of GP projects
  • Visit the customer on a regular basis
  • Be active at the field, winning new GP customers
  • Prepare the Credit Proposal for GP loans
  • Provide financial and other services (financial and technical consultation) to customers
  • Ensure the proper end-use of loan funds
  • Maintain a close link with village societies
  • Engage in social activities to win customers' trust
  • Organise Customer Awareness Programmes and marketing campaigns
  • Maintain an excellent GP portfolio quality
  • Ensure customer satisfaction, handling complaints of GP customers


International recognition received for HNB GP scheme

  • The World Bank carried out a study on Gami Pubuduwa and published discussion paper No.369 in 1995, lauding the Bank for its effectiveness in the use of Field Officers to understand the client, create a market for products of micro-enterprises and provide a wealth of information, facilitating sound banking operations
  • In 1998, HNB was the only invitee from Sri Lanka by the Micro-Finance Network in Washington D.C. at a forum on effective governance of micro-finance institutions
  • HNB received a special award in 1999 from the Asian Bankers Association in Manila for a joint program with Care International under the Gami Pubuduwa scheme
  • HNB received the winning award in 2008 for "Empowerment & Entrepreneurship" under the Special Projects on Corporate Social Responsibility category from the Ceylon Chamber of Commerce
For further assistance, contact

Mr. M V P Gunawardena
Senior Manager - Development Banking
Hatton National Bank PLC.
Head Office, HNB Towers,
479, T B Jayah Mawatha,
Colombo 10, Sri Lanka.
Tel      : +94 (011) 266 1988
Fax     : +94 (011) 266 2823
E-mail : devbank@hnb.lk