Abstract:
Various poverty alleviating programs have been introduced during this decade in Sri Lanka.
Gamidiriya is one of those programs. 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. Pre-tested questionnaire was used to collect primary
data from 80 beneficiaries, selected by using simple random sampling technique. Results of
the study showed that Gemidiriya project at village level is very successful! when considering
about the social and economic impact of project. Almost 100% loan borrowers had spent loan
for income generation activities and 63% of them had increased their income by 20%.
Majority (93%) of them increased their income through the Agricultural sector. Research
findings further showed, most of women were entered in to income generation activities. 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 revealed that, women
are the most benifitted group through engaging in self-employment activities. Lack of
awareness of the program was the main weakness and the generation of more self-employment opportunities was the main opportunity as per beneficiaries. Main threat was the
absence of proper and stable market. 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. Sales outlet
should be started by combining existing market facilities to promote market for the
Gemidiriya producers.
