This paper intended to assess the impact of microfinance on poverty alleviation in Matale district and identify the influence of macroeconomic condition on the net impact of microfinance. For that purpose Matale Regional Economic Advancement Project (MREAP) which was funded by International Fund for Agricultural Development (IFAD) was selected and sample consisted with 100 households who received the microcredit from MREAP. Descriptive statistics and one sample t-statistics revels that microcredit facilities help these beneficiaries to move for higher income ladders and though the nominal income of the beneficiaries has increased macroeconomic condition prevailed in Sri Lanka hampered the real benefit. Therefore, this study highlighted the importance of healthy economic condition in Si Lanka. Without health economic condition Si Lanka unable to reap the maximum benefit from the donor funds.
How to Cite:
Kumari, P. and Kumarasinghe, P., 2014. Success of Matale Regional Economic Advancement Project (MREAP) as poverty alleviation project. Kelaniya Journal of Management, 2(2), pp.99–115. DOI: http://doi.org/10.4038/kjm.v2i2.6553