Microfinance in the Wake of a Tsunami: Sri Lanka

This note from Sri Lanka presents details of the Revive and Upgrade Economic Livelihoods in Tsunami-Affected Areas (REVIVE) project. It states that:

• REVIVE has the potential to restore livelihoods and hope to thousands of Sri Lankan victims of the December 2004 tsunami;
• As a result of the tsunami, many MFIs and credit institutions have liquidity problems;
• REVIVE recognizes that credit is instrumental for micro-enterprises to take advantage of new economic opportunities.

The note explains how REVIVE's three project components are designed to get people back on their feet after the tsunami devastation:

• The microfinance component restores the operations of MFIs in the affected areas by helping their members get credit for restarting income generating activities;
• The cash-for-work component provides immediate income to vulnerable people who are capable of physical labor;
• The economic opportunities component assists households to replace productive assets and deal with market changes.

The note concludes by describing another REVIVE activity - that of helping affected people develop new skills and acquire working assets in line with new economic opportunities.