Abstract:
Banks and financial institutions are playing spacious role in the financial
sector, everywhere in contemporary world. There are many conventional banks and
financial institutions as well in Sri Lanka to offer various kinds of financial services and
transactions amongst people. Nevertheless, the financial services of them are for the
most part with the base of Interest On the contrary, in accordance with Islamic Shariah,
any kind of interest system in financial transactions has been completely prohibited.
Consequently, it was very noteworthy to set up Islamic Financial Institution in the place
of conventional banks and financial institutions for Muslims, on account of the financial
system that they have which is based on the principles of Islamic Law and guided by
Islamic Economics. In this manner, in the vital history of Sri Lankan financial sector,
the establishment of Islamic financial institution initially occurred in 1997. At that
moment, Amana Investments Limited, which is the pioneer Islamic financial Institution
of the country, entered with the vision that, "World class Islamic financial solutions" in
the market.
Since the establishment of Amana, the attitudes of Sri Lankan Muslims on
financial affairs have been step by step changing. Therefore, this study clears up the
importance and effects of the establishment, the development, and Shariah basis
financial services of Amana amongst Muslims in Sri Lanka. The especial gaze has been
given to deeply discuss the Shariah - compliant products which are provided by Amana
such as Mudaraba, Murabaha, Musharaka, ljara vehicle leasing, Ijara equipment &
machinery leasing, Home Musharaka, Property Musharaka, Musawwama, and Imaad
minors investment. The following facts can be plainly pointed out by means of this
study as below;
Realization of the Importance and necessity of Islamic financial services has well
increased among Muslims in Sri Lanka. Establishment of Amana is considered as a
great replacement to the conventional Banks and financial institution for Sri Lankan
Muslims. Financial services of Amana have been unceasingly expanded day by day
amongst Muslims in Sri Lanka, Especially in Muslim dominated Areas,
Amana offers diverse kinds of Shariah - compliant products instead of conventional
financial service
Moreover, this study is based on primary and secondary research methods. So,
direct interviews, discussion with specific groups, observations and the system of
resource references are to be followed. The Books on Islamic Banking and finance,
together with Magazines, Journals, leaflets, Newspapers, related WebPages, and other
related Documents are used to obtain secondary data to carry out this research properly.
