© 2023 Dr Margaret Sheppard

Janashakthi Bank Janashakthi Bank Meetings Social Development

The Janashakthi Bank

Early on through both the meetings and surveys, it was realized that one of the most important problems of the poor people was debt and lack of access to credit. Typically debts would be accrued (as they are the world over) in times of family crises, such as illness and accidents, traditional and necessary ceremonial occasions such as weddings and funerals, adverse weather conditions causing crop failure or damage to housing, property etc.  During these various crises further debts would be incurred as the poor had no opportunity to accrue savings as their incomes were always too low. As they

rarely had collateral they had no access to credit through commercial banks, their only option was to resort to village money lenders which only compounded the problem as these local money lenders charged exorbitant rates of interest (240% being not untypical).


Thus if RWDS members were to develop their resources and family  assets such as their rice paddies, chenas (vegetable gardens), and fishing resources, or build up business enterprises, radical policy was required. They not only needed the means to clear their present burdens of debts but required access to credit at much less than the money lenders' rates. Obviously commercial banks would not be interested as poor people have little or no collateral.


Then with the assistance of the Local Government Agent Mr Mithraratne, a radical solution was facilitated and devised.  In October 1990 the poor women established their OWN bank - the Janashakthi Bank  - and a network of local Janashakthi Bank Societies (JBS) were opened.


It should be noted that although ideas adapted from other countries have influenced its structure, a very important catalyst was a small group of women in a then very poor fishing village called Godawaya. This village, like much of the District, had been riven by the political unrest and riots of the 1980s. Men were dragged into the various political and often violent politics. Neighbour had been set against neighbour. There was much starvation as fishing crews  were often divided politically. If a thatch roof blew off or a mud house collapsed in the monsoon storms, the divided communities, especially the men, were often fearful of rendering traditional neighbourly assistance due to the dangerous political situation.


These courageous women led by the late Mrs G.A Premaltha, Violet and  two or three others, had met together and co-operated to address the seemingly hopeless situation so adversely affecting their family lives. They side-stepped the dangerous politics. Many had lost family members in the political unrest and had had to protect their teenage sons from the roaming political gangs for their safety, often sitting in darkness without a candle or oil lamp after sunset through the long hours of tropical nights, to avoid attracting  the attention of the political gangs. However they were determined to improve life for their families and community. They encouraged group savings amongst themselves to enable them to purchase food and household necessities in bulk instead of in  the much smaller and more expensive quantities. They organised group work amongst themselves to make house repairs, cultivate their yards to grow vegetables (selling any surpluses to generate group savings), to dig latrines thus improving health, assist each other in times of trouble etc. Their husbands were often fearful of helping neighbours who had been press-ganged into other political parties for fear of retaliation.


The Government Agent was so impressed by the efforts of these brave women that they became the “seeds of the JBS” and toured the District to motivate other villages. Over the next few years the JBS was to become so successful that

not only other districts in Sri Lanka showed interest but its fame started to spread abroad. By February 1994) there were 52 JBSs in Hambantota District divided into 4 divisions.




Janashakthi Bank Sign - seen outside each branch

The Early Stages - assessing the problems and needs with a questionnaire in order to target loans not only to relieve poverty but to promote long term development.