Unwanted casualties and increasing social disorders are occurred owing to the microfinance, according to K.Jayasiril, the Chairman of Karaitivu Predeshiyasabha of Ampara district. Microfinance companies cannot carry out their activities in the Karaitivu area without the permission of Karaitivu Predhesiyasabha, he added.
He further stated that activities of microfinance companies which act as the tool of stifling the throat of the poor people are no longer permitted.
He further highlighted that social disorders such as family separation and committing suicide are continuing due to this and microfinance should be given to beneficiaries after verifying their financial capacity to decide whether they can be able to pay the money back.
Several types of microfinances such as one day loan, one week loan and one month loan are introducing to the people and sometimes these are used to convert the religion and to gain sexual bribe. These issues should be rectified, he further added.
