The Collective of Women Affected by Microfinance participated in the Sathyagraha for the 38th day on the Sinhala-Tamil New Year Day (14). They assert that their new year will only dawn when the government sets them free from the microfinance debt trap.
The Sathyagraha was initiated on March 08th in Hingurakgoda, Polonnaruwa demanding that all microfinance debt be cancelled as the ruling Sri Lanka Podu Jana Peramuna Party and the President Gotabaya Rajapakshe promised during two consequent election campaigns in 2019 and 2020.
Microfinance loans disbursed at excessive interest rates exceeding 35% have become unsustainable and have caused over 200 deaths. In 2021 alone three women have committed suicide along with four children. The female victims of predatory microfinance lending declare that they have already paid their debt. They point out that a microfinance debt audit will reveal how microfinance and finance companies have disbursed debt at usurious rates accruing undue wealth and forcing women into debt bondage.
The government has sidetracked from their election promise and have announced a loan scheme of Rs. 100, 000/= at 6% interest rate disbursed through District Secretaries to pay back microfinance debt. Women refuse this initiative claiming that they are against transferring public money to finance companies that have already accrued excessive wealth and a new loan will only exacerbate their debt problem.
They propose a new co-operative like financial mechanism owned and controlled by themselves to address developmental financial needs without trapping them in debt bondage. Women in debt have already made the first step by creating savings societies in their villages. (NewsWire)
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