Micro Credit income-generating activities

Project number: 13-Stunami-2005

 Background
The terrible destruction caused by tsunami followed close on the heels of the damages inflicted by the floods of November and December North East Sri Lanka. People in this region have just been having peace of some sorts after 25 years of war. During these long harrowing years they had been displaced several times from their villages to neighboring villages and also across districts.

The number of coastal villages and families affected by the tsunami is countless. The ruthless tsunami swept away some families and some villages wholesale. It brought down houses, hospitals, schools, churches and public buildings along the coast. Most of these have been either built or renovated recently after the Peace Process started 3 years ago.

At the present moment, Most of this population of about lives in absolute poverty earning less. Social and economic indicators indicate that how profound and bad the situation of poverty will be in this area. Therefore, meeting the basic needs is the main challenge being faced by the majority of this affected population, estimated to be about more than 70%.

These families have expressed great interest in income generation activities that could help them increase their income and give them some sort of security in monthly income.

The Economic Consultancy House (TECH) has contributed towards community empowerment, increase in income, and improvement in capacity, education and health coverage and improvement of service delivery.

Justification:

Refugee’s families have been returning in steady flow to their districts/villages and are now struggling to rebuild their lives and fishing economy on which their lives depend. A significant feature of the population is the increase in female-headed households; in some villages they greatly out number the rest of the population. They have no male family member to depend on. In most cases they have little or no education or skills. There is little or no capacity or resources available for initial income generation

The Objectives

The income-generating project of the TECH emphasizes long-term development that should be implemented in a manner consistent with the development of sustainable micro finance institutions. It is assumed that if saving and credit services were available to poor rural households, the poor would be able to make the necessary investments to improve their livelihood.

The specific objective of the project is to improve the income earning capacity of mainly the rural poor Tsunami affected communities of Jaffna , Mullaitivu District through financing of income generating or employment creating projects. 

The Income Generating Projects  work plan

The objective of the TECH income-generating project is “to design and establish a mechanism for rehabilitation, social action, and poverty reduction projects. The micro credit component of the TECH therefore will be designed to achieving this major goal.  

Major beneficiaries will be displaced persons and women household heads. These project categories cover those activities that create employment opportunities, generate income and self-sufficiency. These include: cultivation of land, livestock rearing, and provision of improved agricultural inputs, wood work, flour mill, fishery, establishment of technical workshops, and establishment of Saloons.

Inline with this, the TECH seek funds to finance 20 income-generating projects in each district with an outlay of RS1000, 000.00 these projects being highly labor intensive helped to create employment for women household heads, and poor peasants.  

Moreover, if necessary it is planned to provide various capacity building and training activities to improve the management and out-reach capacities.

Implementing Organization:

The Economic Consultancy House (TECH) will implement this project.

TECH is registered as a Non Governmental, non-political Organization with the Government of Sri Lanka, and a member of the Consortium of NGOs.

The mission of the to promote self sufficiency and self reliance utilizing locally available resources of Northeastern Sri Lanka

Target:

20 families from each district

Budget:

Each family settler Rs. 25,000.00

40 settlers * 25,000 1000,000.00

Training cost for 3 months 1000,000.00

Total 2000,000.00