Livelihood Micro-Credit and Savings with Education in War-Affected Resettlement Communities in Sri Lanka

Episcopal Relief & Development began a partnership with ECLOF Lanka two years after the tsunami as those affected were better able to restart livelihoods. Since the people affected directly or indirectly living in the tsunami areas had no access to finance from formal financial sources due to the lack of collateral, the ECLOF Lanka programme is one of the only avenues for beneficiaries to start up new activities that would generate income for sustainability. In 2013, ECLOF Lanka began a three-year programme replicating their same methodology in new target areas. ECLOF Lanka identifies clients in the marginalized areas by weighing heavily on the support and information from respective local government offices. At these local government offices are personnel identified for development of income- generating livelihood programmes. These persons assist in the formation of groups / societies of women’s along with the grass root Village Level Officer. These government agents conduct awareness programmes in the training of income generation projects with the assistance of social organizations and volunteer technical consultants. At the end of the third year, the capital fund revolves to new clients and part of the interest earned from loan recovery sustains the administrative and support costs. As the traditional wage earner in the family is the male, ECLOF Lanka's efforts will have a direct impact on women as over 95% of loan recipients are women. This will give opportunities for the development of talents and empower women, as well as enhance the quality of food and educational facilities available to the children in the family. The first programme (6 years in total with 2 3-year projects) served 1,250 clients and the second 2013-15 third year programme served 810 client to enhance their income sources and improve their economic status. In 2016, ECLOF again begins another three-year partnership, this time in new resettlement area called Killinochchi following the 30-year civil war. Similar to the previous target areas, these clients have little access to external credit and ECLOF provides a valuable service to a target 400 clients. In additional the credit services, a major component of the three-year partnership is a strategy to expand Episcopal Relief & Development's Savings with Education methodology to 15 groups in 2016.


Equipping women's self-help groups to design an action plan to address community and social issues, such as solid waste management, tree planting, water source protection, sanitation, etc., Form and train 480 individuals on business skills and livelihood development, Provision of 150 individual livelihood loans who meet the ECLOF loaning criteria, Empower 480 group members to participate in livelihood and social activities, Formation of at least 24 groups in Poonakary and Karachchi divisions, Train and equip 15 ECLOF staff on the Savings with Education curriculum and methodology, Support and monitor 22 continuing Savings with Education groups formed in 2015 reaching approximately 221 members in Chillaw, Moratuwa, Pannipitiya, Mannar, Panadura and Kurunegala.


  • Sri Lanka


  • Economic Recovery and Development
  • Humanitarian Aid

Other projects