* Department of Accountancy and Finance, South Eastern University of Sri Lanka
Online published on 27 February, 2017.
The purpose of this research is to determinacies of factors in Islamic micro finance in Sri Lanka. A theoretical Model is provided that conceptualizes and links different factors influencing the Islamic micro finance. A total of 75 respondents in valaichenai city in eastern province was sampled for research. Suitable statistical methods will be used to analyze the data, such as descriptive statistical table, correlation and regression analysis with the assistance of software. Correlation between the dependent and the independent variable is a positive relationship. The results of the model tested clearly that the use of Islamic micro finance is influenced most strongly by business income, loan information & loan expectation. The results also propose that demographic factors impact significantly client behavior, specifically, occupation, education, improves the live hood and age. The result showed that a significant of clients have improved their religious observations such as prayers and fasting. The results of the econometric models showed that household income, productivity of crops and livestock, expenditure and employment increased significantly due to the influence of change behavior and availability of microfinance. Finally, this research suggests that an understanding the Islamic micro finance currently facing lot of problems in Sri Lanka. The Islamic micro investment programme appears to spur more ethical and economically desirable behavior leading to poverty alleviation.
Micro entrepreneurs, household income, loan information, client behavior
