Abstract:
Women’s economic participation is a key driver of sustainable development.
However, in many developing countries, structural barriers continue to limit their
access to financial resources and decision-making power. The study investigates the
impact of financial inclusion on the economic empowerment of women-led Micro,
Small, and Medium Enterprises (MSMEs) from Kegalle District in Sri Lanka. The
research focuses on three key dimensions of financial inclusion as financial
accessibility, financial literacy and the availability of financial products. A
quantitative research approach was adopted, utilizing primary data collected through
a structured questionnaire. The study population consisted of approximately 5,755
women entrepreneurs. A sample of 362 women from the Kegalle District who have
access to financial services and are actively engaged in economic activities was
selected. Data were analyzed using descriptive statistics, correlation analysis, validity
testing, and multiple regression analysis through SPSS software to assess the strength
and significance of relationship between variables. The results revealed a strong and
statistically significant positive impact of financial inclusion and women’s economic
empowerment. Specifically, improved access to financial services was found to
enhance women’s decision-making capacity, self-confidence and entrepreneurial
potential. These findings underscore the crucial role of inclusive financial systems in
mixed urban-rural contexts and highlight that well-targeted financial policies and
microfinance initiatives can serve as effective tools for reducing gender-based
economic disparities and promoting women’s active contribution to national
development.
