Abstract:
Islamic banking is a growing industry in Sri Lanka and many other countries as well. The study is to empirically
analyse the present situation of Sri Lanka by using the theoretical framework of mainly porter’s five
competitive forces for the Islamic banking industry in Sri Lanka. Marketing strategies must be analysed and
tackled carefully for any newly growing industry in order to get sustainable development. The primary purpose
of the research work is that to explore and pinpoint some marketing strategy issues which can be helpful for
new investors and old stakeholders in the sector of Islamic banking in Sri Lanka in order to penetrate in the
market successfully. Moreover, the aim of the study is how Islamic banking can grow in an environment where
conventional banking sector has deep roots. The target groups are one Islamic bank and four Islamic banking
windows in Sri Lanka. The conventional marketing strategy is followed by all branches of the Islamic bank and
Islamic banking windows. Qualitative study is carried out secondary data materials. The study provides useful
information for the top management of Islamic banks. Findings indicate that the competition is very high in the
industry and Islamic banks could take more market share by introducing the more innovative products with
less price as compared to conventional banks and by widening their branch network to all small and big cities
of Sri Lanka. The study is essential to the banking solidarity in the country as banks able to know the marketing
strategies which Islamic banks can adopt to attract new customers. The policymakers can obtain knowledge of
the marketing strategies that are used to attract and thus use the information in designing appropriate policies
that are regulating the industry.
