iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2021.v02i01.041Instrument Development of Microfinance on Poverty Reduction: Pilot Study in Sri Lankan Microfinance SectorJ.APrasansha KumariSenior Lecturer, Department of Economics, University of Kelaniya, Kelaniya, 11600, Sri LankaThe objective of the study is to investigate measures of microfinance elements drawing from concept of financial integrated approach. The constructs and measures were developed from related previous literature. A pilot study was conducted on 30 borrowers of Samurdhi microfinance program in Sri Lanka. Reliability and validity of the measures were tested to confirm the suitability of the items to represent the constructs and test the conceptualized relationship between each constructs.  The study was 61 items were adopted form pervious study and 4 items newly introduced in this research. The findings revealed that the suitability of all 65 items to represent the each constructs. The instrument will be useful to future researchers to identify the suitable instrument for their studies. The findings and implications of this study could substantially contribute to the government by offering it a deeper insight into its programs, thereby enabling it to make any necessary adjustments, since the study was based on the government microfinance program. Therefore, policymakers and regulators will be able to introduce better tools for eradicating poverty. Future studies can be introduced various items based on new developed microfinance services.