n Journal of Emerging Trends in Economics and Management Sciences - Economic and social assessment of poverty alleviation programs in Sri Lanka - special reference to the Gemidiriya community development and livelihood improvement project.

Volume 1, Issue 1
  • ISSN : 2141-7024
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This study was an attempt to identify the feed back of newly introduced poverty reduction strategy in Sri Lanka, Gamidiriya. This framework was implemented with the assistance of the World Bank in 2004. The World Bank has agreed to provide facilities amounting to 181 million US$ for a period of 12 years to start self employment activities for poor. (Gemidiriya project implementation plan, 2005) Therefore, to assess the importance and the timely requirement of the program and to decide the continuity, this pilot study was carried out under the specific objectives. The primary objective of this study was to find out the economic enhancement of rural community through Gemidiriya project. The study was restricted to four "Grama Niladari" divisions from Athuraliya, Mulatiyana and Hakmana divisional secretariats in Matara district, Sri Lanka, as these areas are highly subjected to this new program. A field survey was employed to collect primary data. Results of the study showed that Gemidiriya project at village level is very success when considering about the social and economic impact of project. There are 100% loan borrowers were spent loan for income generation activities and 63% of them were increased their income by 20%.Moreover, majority (93%) of them increased their income in the Agricultural sector. New approach helps to wean from dependency by improving leadership ability, increasing social values and encouraging self-confidence in rural communities, as majority (80%) is engaging in self employment activities by using granted loans. In SWOT analysis based on the beneficiaries' attitudes revealed that women are the most strengthen group who can reap the benefits of the program and women group has increased their self-employment abilities due to the program. Lack of awareness of the program was the main weakness and increase more self-employment opportunities was the main opportunity as per beneficiaries. Main threat was the absence of proper and constant market for their products. Comparing with the other main anti-poverty programs in Sri Lanka, it can be concluded that the Gemidiriya Community Development and Livelihood improvement project has been comparatively successful approach to village development and reduction of poverty as the interest rate is very low (2-6%). The main reason for that is the Gamidiriya is a people's organization and people have rights to operate the loan system. Therefore, finally study concludes that, the project should proceed further and recommends creating strong market linkage between village producers and private sector.

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