Abstract:
The main purpose of this research article is to identify whether micro finance companies are really beneficial
to the needy people in Anuradhapura, Galnewa village area. This research exposes the real and true situation
of Micro Finance (MIF) loan practices in Sri Lanka to encourage the government for implement stable
program and an essential measures to resolve the microfinance crisis that has led to human tragedy, and to
do justice to MIF institutions and victims. The study employed the case study approach along with focused
on the post- positivistic position that is epistemic. Experimental materials were collected from MIF
companies and rural people in Anuradhapura, Galnewa village who faced that MIF crisis through in-depth
interviews, non-participatory observations and documentary reviews. The target group included eight
persons. The research conclusion was that there are not any benefits from the Micro finance Company in Sri
Lanka to improving the living standards of the rural people and Micro finance Companies had established to
earn profit they didn’t ensure social responsibility. Further, it was concluded that rural people could not
uplift their living standards without developing MIF sector in Sri Lanka. Therefore, development of the MIF
sector in Sri Lanka required regulating institute to regulate MIF institute and limit the frequency of MIF loan
which given by the MIF institutes.
