Women’s financial literacy and digital knowledge failing to meet global standards – Advocata forum

By Hiran H.Senewiratne

The financial literacy rate plus digital knowledge among Sri Lankan women do not meet global standards and these factors could get in the way of their carrying out business transactions digitally in future, Dr.Roshan Perera, Senior Research Fellow at the Advocata Institute said.

Dr Perera was addressing a panel discussion organized recently by the Advocata Institute in view of International Women’s Day. Some of the priorities in this connection are: ‘Digital financial inclusion and deployment of cost-saving digital means to reach currently financially excluded and underserved populations with a range of formal financial services that are suited to their needs. While these should be responsibly delivered at cost affordable prices to customers they should be sustainable for providers.’

The topic of the forum was, “Closing the Divide through Women’s Access to Finance.” It was held at the Colombo Marriott Hotel.

Dr Perera further said: ‘Sri Lanka’s high cost of Internet access disproportionately affects low income earners. Besides, high taxes on internet and other digital services impacts business. Therefore, 45 percent of the population has been now categorized as suffering from debt vulnerability despite the country having a high mobile penetration rate.

‘Although Sri Lanka has a high mobile phone penetration rate, 60 percent of the population has an issue of affordability of mobile data services due to high taxes. Further, Sri Lanka still has issues when it comes to internet coverage. There are population pockets where there is no internet coverage.

‘Lack of good governance leads to financial distress, high interest rates and severe debt, causing reduced savings and asset- pawning among the public. Therefore, erosion of public confidence in the financial sector and perpetuation of poverty cycles create a major bottleneck for the development of this sector.’

At the panel discussion Assistant Governor of the Central Bank Sirikumara Kudagama said that empowering women also amounts to empowering resources, because women are higher in number in the population than males. ‘But the Central Bank can do nothing in this scenario other than regulating and supervising banks and selected non -banking financial institutions, he said.

He said that 89 percent of both the female and male population has some kind of a bank account, while credit card penetration is approximately 10 percent in both genders.

Managing Director at SANASA International, Samadanie Kiriwandeniya, said that financial inclusivity is of concern to women and 35 percent of them have access to some credit. But microfinance is the biggest issue for women, which needs to be regulated, she said.

‘When it comes to microfinance, its high interest rates are creating a lot of troubles not only for banked sections but also unbanked segments as well. On top of that, digital literacy is a prerequisite, she said.

Asian Development Bank’s, Uresha Walpitaga said at the panel discussion that financial literacy is lacking among Sri Lanka women. The other main issue is collateral, therefore, it is time to introduce various financial instruments to minimize these challenges, she said.

Director, Business Development at Selyn, Selyna Peiris said that Lankan women need good training in soft skills, such as English proficiency, preparing accounts, book keeping and also knowledge on how to fill any form, apart from IT knowledge. The panel discussion was moderated by Tusitha Kumarakulasingham of the Women’s Chamber of Commerce.