Regulation and impact investment figure prominently in LMFPA’s South Asia Microfinance Conference

Sri Lanka hosted its first ever South Asian Micro-Entrepreneurs Network (SAMN) conference recently, with the participation of over 280 micro-finance practitioners and industry stakeholders from across the region. Organised by the Lanka Microfinance Practitioners Association (LFMPA), Sri Lanka’s apex body for the industry, the conference saw key players discuss at length the importance of introducing regulation and impact investment opportunities, among others.

This year’s SAMN conference was held on 6 and 7 March at the Cinnamon Lakeside with the stated goal of exploring the possibilities for accelerating financial inclusion in the region, under the theme Deepening Financial Inclusion in South Asia.

Following are extracts from a brief interview with LFMPA Honorary President Imran Nafeer on what transpired at this event:

Q: How did the conference go?

A: It went very well. A number of important topics were taken up, with a wide range of stakeholders, microfinance practitioners, investors, facilitators, apex bodies, technical service providers, and regulators taking part. The conference brought together over 280 leading players from across the region devoted to promoting inclusive finance. We drew participants from all corners of the island, and South Asian as well as European and American regions.

Q: Were there regulators from different countries?

A: Yes, there were.

Q: What made this conference stand out?

A: It was the first time a South Asian micro-finance conference was held in Sri Lanka. It was also the first time in 10 years that an international conference of this nature was held here. 

Q: For the benefit of our readers, could you give us a brief introduction to the LMFPA and the role it plays in SAMN?

A: The LMPFA was established in 2006 with the objective of creating an environment conducive to the unhindered development of microfinance in Sri Lanka. Lobbying regulators and policymakers, institutional capacity building, information sharing are some of the important work we’ve done over the years. In 2008, together with microfinance networks in other countries in South Asia, we formed SAMN which today is the regional body that represents microfinance networks and industries in the region.

LMFPA was the hosting agency this time and it was a great opportunity as a country to showcase our contribution to financial inclusion.

Q: Last time we spoke, you mentioned the importance of introducing regulation. Was this discussed at the conference?

A: Yes, special attention was drawn to the matter of regulation. Among the points discussed was the importance of creating an environment conducive to micro-finance in any country. Participating countries, especially the South Asian nations, shared their experience in this regard.

Q: How did the discussion pan out?

A: There was critical input from all speakers on this topic. There was a lesson to be learnt for the Sri Lankan micro-finance sector on effective implementation of regulation, as it has up to now been a little slow in Sri Lanka. 

Q: Let’s take a minute to remind our readers how regulation came to be introduced and the role the LMFPA played in it.

A: Yes, Sri Lanka is considered an ideal location for innovative microfinance solutions, and what with regulations recently introduced by the Central Bank, the industry as a whole is now expected to be sufficiently standardised. From the inception, we lobbied with regulators to draft the Microfinance Act. We lobbied for 10 years, and finally we made it happen. The LMFPA was the backbone of this regulation. For every draft that came after, they sought feedback from us. The LMPFA was also able to include non-governmental microfinance institutions (or NGO microfinance institutions, as we call them) in the regulatory framework. That was one of our biggest achievements.

Q: Did anyone from the Central Bank take part in the conference?

A: Yes, there was participation from the CBSL, with several high-ranking officials taking part in a number of discussions. It was a great pleasure to have CBSL for this conference and their contribution to the discussions.

Q: This year’s theme was ‘deepening financial inclusion.’ Do you feel this objective was achieved?

A: With regard to deepening financial impact, one of the more crucial aspects discussed at the conference was impact investment. It figured prominently in the panel discussions. Another important point was the role that technology can play in the development of the microfinance sector. 

Q: What was discussed in terms of utilising modern technology?

A: Participants actively discussed how technology can be integrated in areas of mobile money, mobile transactions, digital finance, data analytics, paperless microfinance, etc. They also explored opportunities available to get IT into the industry as well as getting into mobile money.

Q: Now that the conference has successfully concluded, what is the LMFPA’s next step going to be?

A: The conference was immensely beneficial to us as an association as well as the country at large, as we managed to do a lot of image building through it for the microfinance sector in Sri Lanka. The biggest gain was to showcase to the world the advancements we have made as an industry over the years. The LFMPA is now faced with the challenge of taking this momentum forward. The key lessons, especially regarding regulations and impact investments, etc., are what we have to focus on.

As LMFPA President, I must also take this opportunity to thank our sponsors, without whose generous support this event would not have been possible. A very special thanks goes out to our gold sponsor LOLC. Our finance partner Bimputh Finance as well as HNB Grameen as silver sponsor were immensely helpful in putting the event together.