This report is for the fourth quarter of year 2 and marks the end of year 2 of the project. The good progress in the earlier periods has been maintained in this quarter with all year 2 targets met and the expected outcomes. The setbacks due to the impacts of cyclone Ditwa in November 2025 faced by many of the beneficiary families are being overcome with the additional support provided by Sanmarga using the funding from the Halcrow Foundation (63 families affected by the cyclone have been supported).

All 115 year 2 beneficiaries have commenced their chosen enterprises after receiving their grant and loan amounts and relevant skills training from the FRIENDS team. Including the 84 year 1 beneficiaries, a total of 199 beneficiaries are up and running (one year 1 beneficiary with family has left and relocated elsewhere). All year 1 beneficiaries have repaid their loans to the community society and a significant number are seeking top up loans from the society to further enhance their enterprises.

The community society has been able to move forward with all its function following its formal registration. The key function of providing top up loans to members has been a priority during the quarter. Top up loans for forty-one of the year 1 beneficiaries (out of 115) have been approved and are being disbursed. Further loan applications are being received, and these will be checked and processed (the key criterion for top up loans is the use of funds for developing their enterprise and ability to repay).

Planning and initial activities for the year 3 programme has commenced. Following discussions between the FRIENDS team, community leaders and Sanmarga trustees Jeya and Baghi Baghirathan during their visit to the project in late January 2026, a decision was made to focus the year 3 programme in the current five villages and to add one more village. This will help address the high needs in these villages and support the livelihoods progress of the year 1 and year 2 beneficiaries. The surveys and consultations to select 100 beneficiaries for the year 3 programme were well under way by the end of the quarter.

The social development activities were continued very satisfactorily. These were focused on social awareness initiatives on gender equality, children’s rights, and the prevention of alcohol and drug abuse. The five children’s clubs which were already set up plus a new club have been very active with over 500 active children participating.

Baghi and Jeya Baghirathan had a very productive visit to the project in late January 2026. They were accompanied by Bandula Wijesinghe, Chairperson of FRIENDS and met with several beneficiaries and their families as well as committee members of the community society. The beneficiaries included many who had experienced tremendous challenges and trauma during the civil war and the earlier Asian Tsunami. Their resilience and determination to rebuild their lives with the support of the project is extraordinarily humbling.

A video prepared from material collected from meetings with selected beneficiaries is shown in the following YouTube link (prepared by Shivani Baghirathan Nicholls)

Key impacts/outcomes include:

Improved livelihoods/incomes, economic empowerment and dignity for the beneficiary families supported by a sustainable and financially viable Community Society (with 300 members which will increase in future years)

Linked with a network of support services and local government etc.

Increased awareness of alcohol, drug abuse, gender and child rights.

Nanthapava at work

Fabrics and a selection of Nanthapava’s completed items (school bags, garments)

Sivakumar Nanthapava

45-year old Sivakumar Nanthapava lives in Aliyawalai village, a poor rural community. She has three children and is the primary breadwinner of her household. She has strived to transform her family’s life through resilience, skill, and determination. Her husband has been unable to work due to illness and the family has lived in extreme poverty, surviving on Nanthapava’s monthly income of about Rs. 10k (approximately GBP 25). She has struggled to manage their daily expenses and the costs of children’s education including that of a child at university.

Nanthapava interest to use her experience and skills in sewing has led to her setting a home based enterprise with the support of the Sanmarga project. She was given a grant and a loan plus additional training in sewing including women and children’s garments (saree blouses, party frocks, and baby suits etc) as well as sewing machine maintenance and repairs. Her determination motivated her to include the production of school bags in her sewing enterprise.  She launched the dress making and school bag production business in August 2025. Despite his ill health, her husband has provided valuable support.

Nanthapava’s dedication quickly brought positive results and has been life changing. Her business began generating a monthly sales income of Rs.65k (approximately GBP160) with a net income of around Rs. 40k (approximately GBP100).  This steady and increased income significantly improved the family’s financial situation, allowing them to meet their daily needs and support their children’s education with greater confidence.

In addition to repaying the interest free loan she received from the project, Nanthapava has also started a savings scheme to provide longer term financial security for the family. She has saved about Rs 100k (approximately GBP240) within the relatively short period from commencing her enterprise

Nantahala is a shining example of the positive impacts on disadvantaged families by the Halcrow Foundation supported Sanmarga project. She and her family have moved from their desperately poor existence to one with purpose, and long term economic well-being. Her resilience, strength and perseverance has enabled her to build a stable livelihood that supports her family and secures her children’s future. Her journey shows the powerful impact of skill development, financial support, and personal determination. It is not just a story about income generation—it is also about dignity, empowerment and hope for a better tomorrow.

Akaliya with Srikaran’s fishing net

Srikaran’s wife Akaliya at their basic small home

Srikaran Colin Jenson

29-year old Srikaran Colin Jenson lives with his wife, Akaliya and their two young children in Kadaikkadu East village in Mulliyan GN Division. Like many families in this backward village, life has been a constant struggle for survival. He worked as an unskilled labourer in the fishery sector with a meagre monthly income averaging Rs15k (approximately GBP35). They struggled as a family to survive on this income.

Srikaran’s knowledge and experience enabled him to commence an enterprise with the support of the Sanmarga project. He commenced a fishing business with the grant and loan he received and quickly developed a successful business yielding a net monthly income of about Rs 45k (approximately GBP140), which is triple his previous income.
The improved economic situation has been life changing for Srikaran and his family who can afford an improved lifestyle and gives them financial stability. He has purchased an additional fishing net with his savings which will enable him to further develop his enterprise.

Srikaran and his family’s journey with the support of the project reflects a transformation from poverty to progress driven by hard work, family support, and timely assistance. Srikaran and his wife are very grateful for the support received, which has not only improved their financial condition but also given them hope for a more secure future.