A special discussion focusing on strengthening thrift and credit cooperative societies in the Northern Province and protecting the public from the adverse impacts of microfinance loans was held under the chairmanship of the Hon. Governor of the Northern Province, N. Vethanayahan.
This discussion took place today – on Friday 02 January 2026, at the auditorium of the Kilinochchi District Secretariat, where the activities of cooperative societies and their future plans were reviewed in detail.
During the meeting, an in-depth discussion was held on the challenges faced by thrift and credit cooperative societies in the current economic context. In particular, attention was drawn to the disparities in interest rates among cooperative societies across districts within the province, and extensive deliberations were held on resolving these inconsistencies. The importance of maintaining a fair and uniform interest rate system that benefits members was strongly emphasized.
It was specifically pointed out that the role of cooperative societies is indispensable in protecting the public from the debt traps of microfinance institutions—which destabilize the rural economy—and from the resulting social consequences.
Constructive suggestions were also put forward on developing mechanisms to provide loans through cooperative societies at affordable and reasonable interest rates, so as to prevent the people from facing such hardships in the future. Discussions further focused on how the future operations of these societies could be carried out in a manner that prioritizes public welfare.
The discussion was attended by the Kilinochchi District Secretary, the provincial Commissioner of Cooperative Development – Northern Province, Assistant Commissioners of Cooperative Development from all five districts of the Northern Province, the Chairman of the Northern Province Cooperative Development Bank, as well as representatives of thrift and credit cooperative societies and unions.
