Abstract:
In the past few decades, the term Financial Inclusion (FI) gained significant importance due
to the popularity of financial services offered by various institutions globally. It is described
as the opportunity to access secured savings, properly planned financial aids for lowincome people, small and medium scale businesses, insurance, and payment services. FIs
have been known to offer different services that include savings mobilization, loans, money
transfers and insurance products. This paper focus to examine the relationship between
Financial Inclusion and poverty reduction in Sri Lanka. Sample selection of the study is
done using Random sampling technique and consist of descriptive survey analysis. Data was
collected from Ampara. The questionnaire was issued and 100 families responded.
Moreover, collected data using a questionnaire. The questionnaire was coded, cleaned, and
analyzed using SPSS (Statistical Package for Social Scientists). It was concluded that there is
a positive and significant relationship between Financial Inclusion and Poverty Reduction.
The Study recommends in Developing deposit collection and lending strategies in FIs,
Minimizing Central bank financial regulations, developing financial product and services which
are gender-sensitive and sensitive to low-income earners and finally creating awareness in
financial services both urban and rural areas
