Impact of Micro Finance Activities to Living Standard of People in a Selected Area in Sri Lanka

Abstract

Many of the developing countries have improved their people living standard by practicing micro finance. It helps to improve their economic development too. In the present context Sri Lanka also practicing this concept and has successful result from micro financing. RDB had plays a remarkable role in practicing micro financing in Sri Lanka. Based on the selected sample data it was observed that there is an impact of micro finance activities to living standard of people in a selected area in Badulla. 100 Regional
Development Bank customers are selected for this study. Main objective of the study is to identify the impact of the
RDB micro finance activities to improvement in living standard of people. From the data collected, Regression model was run to find the impact of the micro finance loan and living standard indicators. According to the result of the analysis that implies when improving living standard people micro finance activities not plays a major role because there is very low impact on the micro finance activities affect to improve living standard of the people. Other than the micro finance loan there are some other factors affect to advance living standard of people.