Abstract:
Amana Bank (PLC) is one of the most prominent banks providing Islamic based services across the
country. The reason for the popularity of Amana Bank (PLC) is due to the high recognition and consent
of the CBSL. The main objective of this paper is Identify the challenges faced by Amana Bank (PLC)
which is impact on its performances, identify the opportunities and solution to develop the Islamic
banking sector and emphasizing the importance of Amana Bank (PLC) performance to Islamic banking
sector development. This study uses the primary and secondary sources to obtain data. Mainly primary
data are collected from employees of Amana Bank (PLC) through the questionnaires. Also secondary
data are collected from annual reports and official web sites of Amana Bank (PLC). The results of the
study reveals that the Amana Bank (PLC) positively impact on development of Islamic Banking Sector,
even though the Bank faces many challenges to practice Islamic Finance, such as Poor in product and
Shari’ah knowledge, Lack of trained employees and absence of separate governance framework . The
Amana Bank (PLC) has a major responsibility to overcome these as a one and only licensed Islamic
Bank in Sri Lanka. Implication of this research will guide for the decision makers, policy makers as
well as future researchers.
