Gamidiriya is an NFPO- led project designed to introduce community- driven development, (as designed and tested by the Gamidiriya Foundation) to selected villages in Imbulpe and Kalawana Divisional Secretariats.

So far, we have:

• Mobilized communities through awareness programmes, particularly for women and young people;

• Conducted a baseline survey to identify the development needs of each village:

• Established village communities;

• Identified capacity building needs and organized training accordingly;

• Organized workshops on project development concepts, technical and financial proposals, project options, cost- benefit analysis, resource analysis and practical training for village committees. Eg in book keeping

• Established savings and credit organizations (VSCOs) in each village. Project staff organized small savings groups, conducted management training and assisted VSCOs in finding a consultant to explore possible business opportunities.

NFPO is now implementing a handmade paper project as the solution for acute unemployment in Akkaraipattu in Ampara with the financial support of Mercycorps under its economic development programme.

The goal of the project is to create employment opportunities for youths by introducing innovative, eco- friendly, home based industrial project. The hand made paper production is done by using waste paper production and agro waste. Youths are trained in hand made paper production and value added hand made products. The project sets up a factory with machineries at Women Rural Development Committee Centre in Navakkadu, Akkaraipattu.

The project will train 67 youths in paper production and value additions. A special training will be given for quality improvement of value added products. Training will be given initially for 10 youths and they will be recruited to operate the factory. After completion of 12 months operations management of the project will be handed over to a management committee which will be compost of representatives of youth’s committee, NFPO and Ampara District Peace and Social Development Organization (member organization of NFPO).

Under the Relief and Rehabilitation Programme for Tsunami Affected Women, a garment factory was started in Tangalle to response to a suggestion from the tailors themselves. Cifa- Onlus provided the initial capital for the garment factory which now runs as an independent business. Thirteen woman are employed to make a variety of garments ( eg. dresses and t- shirts) and they have negotiated contracts to supply local shops on a regular basis.

Background : NPFO has a history of working in micro credit, pioneering the concept of the Day Bank in 1992. The Day Bank was developed as an alternative to access financial resources for petty traders who are trapped in an exploitative system of credit and have no access to commercial banking facilities.This concept was developed with the sponsorship of EcoSolidar. The main feature of the Day Bank is the daily repayment of loans with interested being charged at the lowest possible rate only for the outstanding loan amount. Maximum payback period ranges from 7 days to 30 days depending on the size of the loan.

NFPO remains active in this area and has set up a new partnership with a registered Thrift & Credit Co-operative Society with 3000 members, supporting 800 small businesses. While this project is running very successfully it does not provide access to finance to disadvantaged people at the very grass roots level. NFPO is continuing to work to overcome the challenges and is active in promoting new ideas for finance and credit at this level.

A modified model of the NFPO innovation ‘ the day bank concept’ has been adopted by commercial banks and thrift and credit societies who have all implemented daily transactions with small-scale lenders. Any new approaches will also to include the coming legislation of the new Micro Credit Act.

While NFPO is piloting new ideas, several of our Network members run successful micro-credit schemes e.g. UGK, SWOAD, WDF

Publications:

Dhananjaya Tilakaratne, 2006, Day Bank Service (Sinhala and English)