Hatton National Bank opens first Micro Banking Unit in Rural Sri Lanka

Posted by admin on 18 November, 2009

As a welcome development in its work creating access to banking and financial services for rural populations in Sri Lanka, BWTP Network member Hatton National Bank opened its first Micro Banking Unit in Kurunduwatte.

The Micro Banking Unit was opened at on 15th September 2009 by the Hon. Minister Mahindananda Aluthgamage, Minister of Power and attended by Mr. Rajendra Theagarajah, MD/CEO and Mr. Chandula Abeywickrema, Deputy General Manager – M & RB.

Since HNB’s first microfinance program, “Gami Pubuduwa”, was launched in 1989, the bank has continued to expand its outreach to the rural of Sri Lanka by providing access to micro-savings, micro-credit, money transfer services and of late microinsurance. The Micro Banking Unit is a new model aimed at further expanding HNB’s outreach to clients working in the agriculture and agri-processing industries, with the main focus in bringing financial inclusion to rural Sri Lanka and youth of the country.

Kurunduwatte is a newly developed model town and is a concept of the Mr. Aluthgamage. The development of the basic infrastructure facilities of the town has now been completed and the commercialization is now in progress.

The Kurunduwatte AGA Division comprises of 31 Gramaseva (GS) Divisions. A number of government institutions have been established within the newly developed town such as a police station, hospital, central bus stand, electricity board, agrarian centre and co-operative sales centre. Many tea factories are also situated in the area. The main source of income of the area is agriculture, which comprises mainly of tea and perennial crops.

The area has a growing need for banking services, particularly in the agriculture sector as well as commercial sectors. HNB Micro Banking Unit fulfils the promise of “Gami Pubuduwa” by making financial services accessible to people in rural areas with the commencement of the first Micro Banking Unit at Kurunduwatte, Nawalapitiya through a fully equipped IT infrastructure and the providing of ATM facilities to the community.

The concept behind this initiative is to offer a comprehensive package of services including financial assistance, technical know-how and marketing arrangements for the rural community. This will significantly contribute towards the development of the rural agricultural economy, whilst bringing banking to their doorstep.

The Micro Banking Unit will be manned by a four member team and will specially focus on not only offering financial services but also providing financial literacy to the people of Kurunduwatte. The staff are very well conversant in the microentrepreneur development, building dialogue and discussion to economically enrich the people of the area. The unit will be headed by Mr. Indika Panditharatne, who has over 15 years of microfinance experience in the Bank.

HNB proposes in the coming months and years to launch into many rural areas of the country with this new model of a delivery point.