BRAC LANKA (GUARANTEE LIMITED)
Sri LankaWonder of Asia
An Indian Ocean island republic famous for its tea, coffee and cinnamon, Sri Lanka bore the brunt of the 2004 Asian tsunami. BRAC quickly responded to the disaster by setting up relief and emergency operations in 2005. Since then, BRAC has expanded its outreach, touching the lives of an estimated 527,000 Sri Lankans, helping to improve livelihoods through rigorous capacity development training and providing over USD 74.2 million in microloans, with 74,000 active borrowers across the countrys 15 most vulnerable districts.
What started out in 1972 in a remote village of Bangladesh as a limited relief operation BRAC - has turned into the largest development organisation in the world. Of major nongovernmental organisation, it is one of the few based in the global south.
Today, BRAC is a development success story, spreading solutions born in Bangladesh to 10 other countries around the world a global leader in creating opportunity for the worlds poor. Organising the poor using communities own human and material resources, it catalyses lasting change, creating an ecosystem in which the poor have the chance to seize control of their own lives. We do this with a holistic development approach geared toward inclusion, using TOOLSLIKEMICRONANCEEDUCATIONHEALTHCARELEGALservices, community empowerment and more.
Our work now touches the lives of an estimated 126 million people, with staff and BRAC-trained entrepreneurs numbering in the hundreds of thousands a global movement bringing change to 10 countries in Asia, Africa and the Caribbean, with operations in our 11th country, Philippines, being launched in 2012.
40th Year Special Edition
Our Mission, Vision and Values 01Chairpersons Statement 020LFURQDQFH Governance 08Management 09 Development partners 09BRAC across the world 10Harnessing the past 12Financials 15
Harnessing the pastEnriching the future
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A world free from all forms of exploitation and discrimination where everyone has the opportunity to realise their potential.
Our mission is to empower people and communities in situations of poverty, illiteracy, disease and social injustice. Our interventions aim to achieve large scale, positive changes through economic and social programmes that enable men and women to realise their potential.
InnovationFor forty years, BRAC has been an innovator in the creation of opportunities for the poor to lift themselves out of poverty. We value creativity in programme design and strive to display global leadership in groundbreaking development initiatives.
IntegrityWe value transparency and accountability in all our professional work, with clear policies and procedures, while displaying the utmost level of honesty in our financial dealings. We hold these to be the most essential elements of our work ethic.
InclusivenessWe are committed to engaging, supporting and recognising the value of all members of society, regardless of race, religion, gender, nationality, ethnicity, age, physical or mental ability, socioeconomic status and geography.
EffectivenessWe value efficiency and excellence in all our work, constantly challenging ourselves to perform better, to meet and exceed programme targets, and to improve and deepen the impact of our interventions.
Vision, Mission and Values
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It gives me great pleasure to present the ANNUALREPORTANDTHEAUDITEDNANCIALstatements for the year ended 31 December 2011.
The year concluded saw Sri Lanka engaging in large-scale reconstruction and development projects following the end OFTHEYEARCONICTWITHTHE,IBERATIONTigers of Tamil Eela, including increasing electricity access and rebuilding its road and rail network. Sri Lanka now seeks to reduce poverty by using a combination of state directed policies and private investment promotion to spur growth in disadvantaged areas, develop small and medium enterprises, and promote increased agriculture. In a country with a population of over 21 million, the unemployment rate is relatively low, standing at 4.3 per cent as of 2011, the lowest yet for the country. Continued employment generation was due to reconstruction, infrastructure development and expansion of economic activities.
In 2011, BRAC Sri Lanka began its agricultural development programme to provide farmers living below the poverty LINEWITHAGRICULTURESPECICCREDITSUPPORTWith the support of our development partner Etimos, 471 farmers in this programme have received orientation and input support for the cultivation of cocoa plants which they can sell to Etimos cocoa factory, based in Sri Lanka, at a fair wage.
BRAC Annual Report 2011 3
BRAC continues to provide relief in areas suffering from environmental disasters. With the support from Stromme Foundation and food donations from its BENECIARYFARMERS"2!#HASPROVIDEDPEOPLEAFFECTEDBYTHEOODSINeastern Sri Lanka in February 2011 with dried and cooked foods while they focused on rebuilding their livelihoods. At the request of the government of Sri Lanka, BRAC has also provided public LATRINESFORSHERMENINTHEPORTOF4RICNOOORMATSFOROODVICTIMSIN"ATTICOLAand sports and wet weather materials for school children in southern Sri Lanka.
In 2011, BRAC directed its efforts to scaling up its services, opening NEWBRANCHESINVEDISTRICTSINwestern, central, north central and eastern provinces of Sri Lanka. We have organised 112,329 members, all women, into 6,131 village organisations. Over 74,000 members (including 36,022 new members) are actively borrowing and more than USD 74.2 million has been disbursed to date. We provided holistic capacity development training to 177 members of staff.
While our work in Sri Lanka started with disaster relief and rehabilitation following the Indian Ocean tsunami of 2004, by 2007 our focus had turned to longer term efforts in revitalising affected enterprises ANDECONOMIESTHROUGHMICRONANCEWith the end to three decades of armed CONICTIN"2!#lSWORKIN3RI,ANKAaims to build livelihoods to help turn the peace dividends into a practical reality.
Through our extensive global experience INMICRONANCEWEKNOWTHATLIVELIHOODdevelopment works best when it goes beyond providing loans. In Sri Lanka, "2!#lSHOLISTICMICRONANCEPROGRAMMEacts as a capacity-building platform. A combination of local knowledge and rigorous training means that our staff are best placed to support the poorest, MOSTMARGINALISEDBENECIARIESINTHEIRentrepreneurial endeavours. BRACs local staff are women, employed from within the branch areas in which they work, ensuring a truly contextual understanding of the challenges faced locally. The combination of all our efforts results in enhanced livelihoods of women across the country, in turn ensuring PROGRESSTOWARDSACHIEVINGTHERSTANDthird Millennium Development Goals, eradicating extreme poverty and hunger and the empowerment of women. In the coming year, BRAC hopes to continue its expansion to reach more of the most vulnerable women in rural Sri Lanka.
I take this opportunity to commend our team in Sri Lanka who have worked with enduring commitment and loyalty to engage every opportunity that has come our way. The quality of our performance is attributed to this remarkably competent team, their knowledge, skills and professionalism. I extend my sincere thanks to the members of the governing body, whose leadership and foresight has steered the company to success. I thank the government and our development partners in Sri Lanka for their continued support as we strive to create greater value in our services to contribute towards the progress and prosperity of Sri Lanka.
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)NNOVATIVECLIENTFOCUSEDANDSUSTAINABLETHE"2!#MICRONANCEPROGRAMMEISACRITICALCOMPONENTOFOURHOLISTICapproach to support livelihoods. Over the course of the last four decades, we have grown to become one of the WORLDlSLARGESTPROVIDERSOFNANCIALSERVICESTOTHEPOORPROVIDINGTOOLSWHICHMILLIONSCANUSEFORTHEBETTERMENTOFtheir lives.
$ESPITETHESIGNICANTSTEPSFORWARDSINCETHECIVILWAROFCIALLYENDEDINANDTHEdevastating impact of the 2004 Tsunami eased, it is estimated that 1.8 million people in Sri Lanka remain below the poverty line . Economic activity is concentrated in the prosperous western provinces, with huge income differentials in the eastern and inland RURALDISTRICTS"2!#AIMSTOLLTHEGAPSINNANCIALSERVICESACROSSTHECOUNTRYANDTOsupport its clients as they grow.
Filling service gaps for the poor
Women attend a BRAC Village Organizations weekly collection meeting in Madapathana neighbourhood of Galle district. Sri Lanka.
As depicted in the diagram, we address THESCARCITYOFNANCIALACCESSTOPOORwomen by providing them with targeted NANCIALSERVICES"2!#STRONGLYBELIEVESthat the poor are able to help themselves when organised effectively. With this in mind, BRAC conducts comprehensive door-to-door surveys, consulting traditional and government leaders to select poor, uneducated but economically active women. To date, BRAC has mobilised over 112,000 such women into village organisations (VOs), each consisting of 20 to 40 members, across 15 districts out of 25 of Sri Lanka. These groups, led by ARIGOROUSLYTRAINED"2!#CREDITOFCERnetwork and support the women to be effective conduits for their own social change.
BRAC Annual Report 2011 5Microfinance
Serving women borrowers
At the core of our intervention is the collateral-free micro-loan, exclusiv