Abstract:
Sri Lanka is a Multi-cultural country which practices Islamic banking and finance in most successive
way along with operations of Islamic banks and financial institutions. As a result of rapid growth of
Islamic banking and finance industry, the Islamic pawning system has been introduced to provide
shari’ah based experience to the community who need micro credit facility. Amana bank PLC
introduced Gold certificate financing as an alternative for Conventional pawning and is the first of its
kind to be introduced to the nascent Islamic banking and finance industry in Sri Lanka. The objective
of the study is to identify Issues based on Legal and General Issues as well as Challenges based on
Operational and Promoting Challenges. This study is designed as qualitative research. The sources of
data is primary, collected by way of interviews. Research finding indicates Gold certificate financing is
the best and successful alternative product to conventional pawning along with some identified issues
and challenges which can be mitigated in future of its sustainable development.
