Micro Finance Institution is an important tool to enhance the living condition of poor people in developing countries and Sri Lanka as well. From time to time Sri Lanka faced difficulties and challenges such as Tsunami and conflict situation. MFIs help poor people by giving financial and...

This paper introduces a new index of financial inclusion for 151 economies using principal component analysis to compute weights for aggregating nine indicators of access, availability, and usage. It then assesses the impact of financial inclusion on poverty and income inequality. The results...