Research shows that conventional finance will not hold for long and one alternative is Islamic finance, said Sumith Adhihetty, Managing Director, LB Finance at the company’s launch of Islamic Finance Unit in Colombo this week.
He said that it is the right time with the country recovering from a prolonged civil war and the financial market getting back to normal after the recession to launch this scheme. They also see a great potential for’Al Salamah’ Islamic finance in Sri Lanka in the future.
He said that they believe that as a responsible corporate citizen they have a responsibility to the people in the North and East to help them recover their lost pride. With this in mind, to go along with the government’s Reawakening the North and the East programme they have massive expansion plans for the area.
He said that they have identified particularly in the East, a high demand for Islamic finance. In fact recent research they have done in the area shows that conventional banks will not be able to hold on their own, particularly in those areas where there is a predominantly Muslim population. Even in other parts of the country, Islamic Finance is catching up fast.
As an organization sensitive to market changes this paved the way for their entry in to Islamic finance market.LB Finance has been doing well in the last few decades and there is a growing demand for Islamic Finance and it has become more prominent during the recent years after the global financial crisis. And thus it is right time now to get into Islamic Financing after the prolonged civil war as the financial market in the country is settling to normalcy.
At this launch LB Finance introduced four Islamic Finance products such as Ar Rahnu, Shari’a Compliance Gold Loan; Mudarabah Investment Accounts; Murabaha, Trade Financing and Ijarah, Islamic Shari’a Compliant Leasing.