The study analyzes the efficiency and sustainability of Microfinance Institutions in Sri Lanka during financial crisis time period for 2008 and 2009. For this course firstly Data Envelopment Analysis is applied to measure efficiency and then sustainability check is tested. The results reveal that medium sized institutions are more efficient and low transaction cost is revealed in operating expense heads of efficient institutions. Sustainability focus is found to be limited because government provides grants to these institutions. The main barrier towards sustainability is the low quality of portfolio.
Download