Abstract:
The present study was carried out to determine whether the formal
sector financing has a significant effect on the marine fisheries in the North
Western, Western and Southern provinces of Sri Lanka and to determine
whether granting of loans has resulted in any socioeconomic development
among the fishers. Results indicate that granting of loans to fisheries sector
has not resulted in a significant increase in the marine fish production in
these areas during the period 1987-1997. Further, there was no significant
relationship between the marine fish production and the rate of repayment
of loans. It was also revealed that the recovery of loans by the financial
institutions was unsatisfactory. Improvements in the recovery of credit could
be made by reviewing the reasons for failures of previous financing schemes,
close monitoring and supervision and becoming more familiar with the
attitudes and problems of the fishers. Study also showed that the majority
of fishers who have obtained loans ~ Rs. 20,000/= live in tiled 1 asbestos
roofed houses built up with bricks 1 cement blocks while the majority who
have obtained < Rs. 20,000/= live in cadjan 1 tar / GI roofed houses built up
with clay / wooden planks. It is necessary to train fishers to budget their
income. Involvement of women of fisher households in bank lending and
savings activities may be useful in this regard.
