Abstract:
Microfinance institutions (MFIs) provide a range of financial services to poor people. This study aims to identify
the relationship between efficiency and financial sustainability of microfinance institutions in Jaffna district. For
the purpose of this study, Co-operative Rural Banks under two MPCS were selected by using the convenience
sampling method. Data was collected and analyzed by using the SPSS for the period of 2007-2009. In this study,
correlation and regression analysis were used. The results show that administrative efficiency and operating
efficiency are strongly positive associated with financial sustainability among co-operative Rural Banks in Jaffna
district. Further the study reveals that administrative efficiency and operating efficiency have a significant impact
on financial sustainability.
