LOLC launches Shari'ah compliant financing
Hiran H.Senewiratne
Lanka ORIX Leasing Company PLC (LOLC), an innovative Financial
Solutions provider in Sri Lanka launched a range of Shari'ah complaint
financial products (financing done in accordance with Islamic
Principles) yesterday.
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President Sharia Supervisory Board (LOLC) Shaikh Fazil Farook
greets LOLC Deputy Chairman Ishara Nanayakkara at the event.
Picture by Saliya Rupasinghe |
The company pioneered Leasing and Factoring to the Sri Lankan
financial services sector and continues to make a vital contribution
towards the growth of this sector. Lanka ORIX Finance company Ltd, a
fully owned subsidiary of LOLC is the only Finance Company in Sri Lanka
registered under the Central Bank to be granted approval to mobilise
Shari'ah compliant deposits.
The entry of the LOLC Group into the arena of Islamic Financing will
add momentum to the growth of the product due to rapid product
innovations and country wide distribution through its strategically
placed branch network;
The newly set up Islamic Business unit of LOLC will offer Ijarah
(Leasing), Murabaha (Trade Financing), Mudharabah (Profit Sharing
Investments) and Diminishing Musharakah (Property Financing) initially
and these services will be supervised by the Shari'ah supervisory board
in order to assure that these services are strictly guided by the
Shari'ah principles.
The company has established a separate Islamic Business Unit (IBU)
for Islamic Finance Solutionis to ensure that this product is managed in
strict compliance.
This Unit has its own brand identity, namely 'LOLC Al Falaah', which
is derived from the Arabic Language and means "success".
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Islamic Financing is one of the growing sectors in the world and its
total value would reached US $ 4 trillion in the next five years,
Chairperson Lanka Orix Leasing Company (LOLC), Rohini Nanayakkara said.
"Currently the total value of US $ 600 billion with an annual growth
of 35 per cent, holds a premium position even in non Islamic countries
like Sri Lanka. Being a niche market it has a huge potential in Sri
Lanka," Nanayakkara said launching of Islamic Financial Unit of the
company.
Records revealed that in 1975 first fully-fledged bank in Sri Lanka
is growing in Sri Lanka, is one of the few non-Islamic countries to pass
legislation to facilitate the sector, Nanayakkara said. There is a big
potential in the market being a niche product. Therefore, only 10 per
cent being tapped and 90 per cent of the market un-tapped in Sri Lanka
Chairperson said.
She also said that they want to make their products more accessible
and available to every community, as it is popular among many people in
every community. |
