Abstract:
In this contemporary world, insurance plays a significant
role in the affairs of a human being. It has become inevitable
in the life of people. This study aimed at analysing the
operations of Takāful (Islamic insurance) companies that are
regulated by the Civil Law and finding their core regulatory
issues in Sri Lanka. This study highlights the role of
Sharīʻah Advisory Council in Takāful industry in Sri Lanka
as this council formulates policies and guidelines, and
ensures the investment and operation in line with Sharīʻah
principles. The research also discusses core issues relating to
Islamic insurance such as operation, investment, reporting
and separation of funds. It argues that there is a need for the
Muslim Leaders as well as the Sharīʻah scholars, Takāful
operators and academics to be effectively involved in
designing a framework for Takāful regulations in Sri Lanka.
Finally, the research recommends the establishment of a
regulatory council that will be responsible for the
formulation of Takaful Law in that will be similar to that of
the Malaysian Islamic Financial Service Act 2013 (IFSA), in
Sri Lanka.
