The purpose of microfinance component of the Dry Zone Livelihood Support and Partnership Programme (DZLiSPP) which was implemented from 2005 to 2012 in four districts of Anuradhapura, Kurunegala, Badulla and Monaragala was to facilitate the poor and low income families to invest in income/livelihood activities through provision of concessionary easy credit and other supports such as training. The credit supply to beneficiaries was done under the specific credit scheme, ‘Bhagya' with the involvement of state and regional banks in the area and with supervision and provision of refinance facilities by the Central Bank of Sri Lanka. The impact evaluation study was done by HARTI and its major objective was to enhance knowledge on strategies adopted in implementing micro-finance component of the programme. The specific objectives were to evaluate contribution of this component to sustainability of livelihood of beneficiaries and to evaluate impacts on the beneficiaries. The study methodology covered the collection of primary as well as secondary data. The primary data collection methods included sample survey of beneficiaries, key informant interviews, focus group discussions etc.