Study on strategies of Islamic Banking industry in Sri Lanka

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.