A well-functioning financial system is indispensable for the dynamic development of a national economy and its various sectors. It is estimated that less than two percent of small and micro-enterprises in the South of Sri Lanka have access to formal finance, despite the recent experience in a growing number of countries that demonstrates that these enterprises are both able and willing to fully repay their loans at cost-covering interest rates. This raises a crucial question for development organizations: how can they assist the banking sector and the small and micro-enterprise sector to establish mutually beneficial business relationships? This volume is directed towards policymakers, development planners, experts and practitioners. Its objective is to contribute to a long overdue new paradigm of the role of the financial sector and provides practical solutions based on a systematic appraisal of recent findings by technical cooperation agencies.