Building Solid Foundations

Brick is one of the oldest, most enduring and least expensive building materials in the world. Bricks are popularly used for construction in Sri Lanka because they can be made with very little technology and natural materials that are readily available around the island.

To make the bricks, skilled labourers in Sri Lanka select and dig up mud that is high in clay content, which is ideal for brick making. Bricks need to be uniform in size for construction purposes, so the mud is packed into wooden moulds in the shape of a box. The mud moulds are then left to dry in the sun for one day. Once the mud blocks have dried, they are stacked in a storage hut leaving space for air to pass between them. Paddy waste is sprinkled on and around the bricks and then set on fire. The firing process, which can take up to four days in the dry season and a week during rainy season, hardens the mud and turns it into bricks that are ready to use.

Ananda, a brick-maker from the Hambantota district in Sri Lanka?s Southern province, has been making mud bricks for five years. His village is well known for making this construction material and Ananda, a father of two, learned his trade while working for another brick manufacturer in the area. One day, he decide that he wanted to set up his own brick-making business, but he was unable to make many bricks each month because he only had one hut in which to fire the bricks and his unit costs were much higher than other established brick makers.

Fortunately, Ananda was a member of a CBO that is affiliated with Sewalanka Foundation. Through Sewa Finance?s microfinance activities with his CBO, Ananda was able to get a Rs. 10,000 loan from the CBO. Over the past year, he has steadily grown his business with the support of Sewalanka and Sewa Finance.

Before getting his loan, Ananda faced several challenges. He was unable to pay for the paddy waste he needed to fire the bricks and would have to order the supply on credit. Using credit meant he was charged at a higher rate than if he paid cash. He also had to rent a tractor to transport the paddy waste?and additional cost that affected his bottom line. His storage hut had a wicker roof, which both let in rain and frequently burnt during the drying process. Ananda incurred extra cost frequently repairing the hut.

With his Sewa Finance loan Ananda was able to pay cash for the paddy waste. He also bought a small amount of paddy land, which generates income from rice production and provides a great deal of the waste he needs, eliminating the need to purchase externally. Recently, he took out a second Rs. 40,000 loan with his CBO, which enabled him to expand his business further. He has bought a tractor, which reduced his transportation costs and he has built a metal roof onto his brick hut, which keeps his product dry and remains intact during the firing process.

Ananda currently makes 12,000 bricks and is able to employ one staff member. His bricks sell for Rs. 42,000 bringing in a net income of Rs. 25,000 for him and his family. This regular income has meant his children can both go to school. Because the demand for his bricks is still larger than his supply, he is keen to expand his business further and hire a second employee.