World Bank2012-06-222012-06-222005-01https://hdl.handle.net/10986/8812Sri Lanka has made significant achievements in the provision of financial services in some areas, but there are still critical market segments that remain underserved, especially for small and rural enterprises. Low-income households could also benefit from access to a more diverse set of financial products, such as enhanced remittances and payment services, longer-term savings instruments, insurance products, and improved access to housing finance. The complexity and diversity of the needs suggest that various approaches have to be examined and that a broad range of institutions can be engaged in the delivery of financial services. This report analyzes opportunities for expanding services to key underserved markets. Chapter 2 looks at the expansion of financing opportunities for small businesses. Chapter 3 complements the analysis of Chapter 2 by examining how to improve finance for agriculture through supply chains. Chapter 4 focuses on delivery channels for rural remittances. Remittances to Sri Lanka have been growing rapidly, and the risks posed by informal networks need to be minimized. Moreover, linking migrants to formal financial institutions will yield additional benefits by exposing them to a broad range of financial services (such as savings, credit, and insurance) that can help them manage their economic risks better. Chapter 5 explores the potential role of the postal network in broadening access to financial services in rural areas. Chapter 6 summarizes the main findings of the report.en-USCC BY 3.0 IGOACCOUNTINGADBAGRICULTURAL FINANCEAGRICULTURAL PRODUCEAGRICULTURAL SECTORAGRICULTURAL SERVICESAGRICULTURAL SUPPORTAGRICULTUREASSETSAUTOMATED TELLER MACHINESBALANCE OF PAYMENTSBANK BRANCHESBANK DEPOSITSBANKING LEGISLATIONBANKING SECTORBANKING SYSTEMBANKING SYSTEMSBETTER ACCESS TO INFORMATIONBORROWINGCAPITALIZATIONCENTRAL BANKCENTRAL BANK OF SRI LANKACLEARING HOUSECO-OPERATIVECOMMERCIAL BANKCOMMERCIAL BANKSCOMPANYCOMPREHENSIVE STRATEGYCONFLICTCONSUMERSCONTRACTUAL SAVINGSCONTRACTUAL SAVINGS INSTITUTIONSCOOPERATIVESCORPORATIONCREDIT RISKCROWDING OUTDEBTDEPOSITSDUE DILIGENCEECONOMIC GROWTHECONOMIC RISKSELECTRONIC FUNDSELECTRONIC FUNDS TRANSFERELECTRONIC FUNDS TRANSFER SYSTEMSEMPLOYMENTEXCLUSIVE RIGHTSFACTORINGFARMERSFINANCIAL DEEPENINGFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL RECORDSFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCING SOURCESFISCAL DEFICITSFOREIGN BANKSFOREIGN ENTRYGDPGROSS DOMESTIC PRODUCTGROWTH POTENTIALHOUSINGINCOMEINSURANCEINSURANCE INDUSTRYINTEREST RATESINVESTMENT COMPANIESKOREALEGAL FRAMEWORKLEGISLATIVE FRAMEWORKLENDING PATTERNSLIMITEDLIQUIDITYLTD.MACROECONOMIC STABILITYMANAGEMENT INFORMATION SYSTEMSMANDATESMERCHANT BANKMERCHANT BANKSMICROFINANCENET SAVINGSNONBANK FINANCIAL INSTITUTIONSNONPERFORMING LOANSPAYMENT SYSTEMSPENSIONSPOORPOOR HOUSEHOLDSPORTFOLIOSPOVERTY ALLEVIATIONPOVERTY INCIDENCEPOVERTY REDUCTIONPRIVATE BANKSPRIVATE COMMERCIAL BANKSPRIVATE PARTNERSHIPSPRODUCT MARKETSPRODUCTIVITYPROFITABILITYPROPRIETARYPUBLIC FINANCIAL INSTITUTIONSPUBLIC POLICYPUBLIC SERVICESREAL INTEREST RATEREGIONAL DEVELOPMENT BANKSREGULATORY FRAMEWORKRESOURCE ALLOCATIONRESOURCE MOBILIZATIONRETIREMENTRISK MANAGEMENTRURALRURAL AREASRURAL BANKSRURAL CREDITRURAL ENTERPRISESRURAL FINANCERURAL FINANCIAL SERVICESRURAL HOUSEHOLDSRURAL INFRASTRUCTURERURAL SECTORSAVINGSSAVINGS ACCOUNTSSECURITIESSECURITIZATIONSMALL BUSINESSSMALL BUSINESSESSOCIETIESSPECIALIZED BANKSSTAKEHOLDERSSTATE BANKSTATE BANKSSTATE ENTERPRISESSUBSIDIARYTECHNICAL ASSISTANCETOTAL FACTOR PRODUCTIVITYTRANSACTION COSTSTRANSACTIONS COSTSTRANSPORTTRUSTSVALUE ADDEDVENTURE CAPITALWorld Bank10.1596/8812