Alternative Financing champion HNB Al-Najah leads the way for empowerment and economic rejuvenation

HNB DGM – Wholesale Banking Group Damith Pallewatte and HNB DGM – Islamic Banking Hisham Ally (sixth and seventh from left, respectively), along with HNB Senior Management and the Al-Najaah team receiving their awards at SLIBFI 2023

HNB DGM – Wholesale Banking Group Damith Pallewatte (third from right), Agro Extracts Lanka Managing Director Mohamed Inaam (second from right) and HNB AGM - Corporate Banking Majella Rodrigo (far right), along with HNB Senior Management and the Al-Najaah team receiving their awards at the IFFSA Awards 2023

HNB DGM – Wholesale Banking Group Damith Pallewatte and DGM – Islamic Banking Hisham Ally inaugurating the new IBU at Gampola

HNB MD/CEO Jonathan Alles

HNB DGM - Wholesale Banking Group Damith Pallewatte

HNB DGM – Islamic Banking Hisham Ally

A specialist in Alternative Financing with deep expertise in performing large ticket and complex transactions, HNB Al-Najah recently added to their numerous accolades, picking up multiple Golds at the IFFSA (Islamic Financing Forum of South Asia) and SLIBFI (Sri Lanka Islamic Banking and Finance Industry) Awards. 

With considerable expertise in the sector, the unit has seen remarkable growth over the past decade, and have established themselves as industry leaders in the process.

Established in 2012, HNB’s Islamic Banking (IB) has consistently stood at the forefront of the Islamic Banking space, amassing numerous awards since 2014. The recipient of several local and international awards, HNB Al-Najah was notably acknowledged as the Best Shariah Compliant Window in Sri Lanka for 2017 by The UK based Banker magazine. 

In 2023 alone, adding international accolades to their portfolio, they also earned four distinctions, including the coveted “Islamic Finance Entity of the Year” and “Islamic Banking Window/Unit of the Year” Gold Awards at the IFFSA (Islamic Finance Forum of South Asia). Held at the close of the third annual IFFSA forum included delegates from India, Pakistan, Bangladesh, Maldives and Sri Lanka. Their tremendous performance in the last year was also recognised with the Gold Award for “Breakthrough Performance of the Year,” with HNB DGM - Islamic Banking, Hisham Ally, being recognised for his direction with the “Transformative Leadership Award.”

The well-recognised unit further consolidated their position by winning the most prestigious awards at the Sri Lanka Islamic Banking and Finance Industry Awards (SLIBFI) 2023. The bank took home three awards, including Gold Awards for the prestigious Islamic Finance Entity of the Year and the Islamic Finance Window/Unit of the Year. 

Testament to their empowerment of grassroots businesses, two HNB-nominated clients were recognised at both IFFSA and SLIBFI Awards in the ESG Awards category, with Expack Corrugated Cartons PLC winning the Gold Award and Agro Extracts Lanka Ltd. winning the Merit Award. 

“We take immense pride in Al-Najah’s remarkable accomplishments, particularly amidst global peers. Our Islamic Banking has shown consistent growth since its inception a little over a decade ago, now yielding profits exceeding Rs. 1.15 billion. These awards reflect the unwavering dedication and hard work of the IBU team, and we extend our heartfelt congratulations for this outstanding achievement,” said HNB CEO/MD Jonathan Alles.

Alternative financing, such as Islamic banking and other non-traditional avenues of banking, have gained significant traction over the years. In addition to bringing in a significant amount of unbanked individuals, a large portion of Al-Najah’s customers are MSMEs and emerging corporates, fuelling economic growth through tailored financial solutions that empower these enterprises and foster sustainable development in the communities they serve.

“Taking into consideration the fact that globally, Islamic finance is estimated to have a value of $ 4.2 trillion, there is definitely potential for Islamic Banking to make vital contributions in accelerating Sri Lanka’s economic revival. Since their inception, HNB’s Alternative Financing Unit has increased their bottom-line from 14 million in 2012 to over 1.2 billion rupees at the end of 2022. It is evidence to their consistent growth and excellence, and in our eyes, has firmly established Al-Najah as leaders in their sector. I would like to congratulate the entire team on their continued success at the highest level, and wish for their continued prosperity,” said HNB DGM – Wholesale Banking Group Damith Pallewatte. 

In line with HNB’s drive for digitalisation in the local sphere, Al-Najah has integrated the Bank’s digital systems into their operations to provide their customers with the latest digital banking features. HNB’s recent upgrade to their systems ensures that Alternative Financing customers have their own dedicated digital module embedded within their online platforms, where customers can enjoy personalised digital banking features along with all other features that the platforms offer.

Established in 2012 as a small unit with five staff members under the capable leadership of HNB DGM- Head of Islamic Banking, and local pioneer in the field of Islamic banking and finance, Hisham Ally, the division has enjoyed strong growth over the past decade. Today, the HNB Al Najah has grown to 55 staff with a dedicated office in Marine Drive, Colombo 03 and a further Eight Islamic Banking centers in Pettah, Kandy, Kalmunai, Beruwela, Akurana, Kattankudy, Gampola and Mount Lavinia.  

Driven by a customer-centric approach, Al-Najah prides itself on offering a wide range of Islamic Banking products to substitute for traditional banking, so that their customers have access to industry leading alternative finance services.

“All the plaudits we have received are a testament to the team’s diligence and dedication to alternative financing, and to HNB’s larger mission towards economic revival and SME empowerment. MSMEs are the bedrock of our economy, and is particularly relevant to alternative financing since it offers a large percentage of the unbanked population avenues towards banking facilities and digitalisation.  

“To this effect, we have also conducted awareness and financial literacy sessions in key areas to promote financial responsibility from the grassroots. In addition to the current workshops being conducted upcountry, we have identified several other areas we would like to begin these programs. I am grateful for the recognition we have received over the years through our efforts to support the nation,” said HNB DGM – Islamic Banking Hisham Ally. 

Hisham Ally is a stalwart in Sri Lanka’s Islamic Banking sector, from being a part of the core unit that introduced Islamic Banking to Sri Lanka to pioneering one of the largest Islamic Banking divisions in the country. His direction was instrumental to Al-Najah’s impressive growth and portfolio, channelling his expertise into guiding what has become one of the leading units in alternative finance. 

In addition to bringing more previously unbanked individuals and MSMEs into the formal banking system, the scaling up of Islamic Finance may also create new opportunities for attracting international capital, trade and investment into Sri Lanka, lending further momentum to HNB’s overarching mission of rapidly rejuvenating the Sri Lankan economy. 

Al-Najah has been honouring their commitment to opening two new locations that offer alternative financing a year, establishing new units in Gampola, Pettah (Metro) and Mount Lavinia in 2023 alone. The team forecasts further expansion of 2-3 units per year, and have identified areas in the Central, Eastern and Southern districts as prospective areas for growth.

In tandem with this growth, the Unit also conducts awareness and financial literacy programs in areas with areas with high volumes of MSMEs and emerging corporates. Their sessions have since received over 400 participants across 34 locations, supporting businesses to scale sustainably while staying uncompromising on their principles.

Founded in 2008, UTO EduConsult has solidified its position as a key player in the MICE industry, proudly organising a variety of annual events. Among these are the SLIBFI, MIBFI, and IFFSA - Conferences and Awards ceremonies, reputed events in the Islamic Finance industry that extend their influence beyond Sri Lanka, reaching into the Maldives and across South Asia. Committed to fostering a dynamic community, UTO EduConsult also spearheads youth-focused initiatives such as the RAISE Summit. This platform not only raises awareness on crucial social issues but also engages the younger generation through quiz competitions, futsal tournaments, and contests for budding entrepreneurs. 

With 254 customer centres and 800+ Self Service Devices (SSMs) nationwide, HNB is one of Sri Lanka’s largest, most technologically innovative private banks. Consolidating its legacy in sustainability, good governance and corporate excellence, HNB was crowned the Best Corporate Citizen for 2022 at the Ceylon Chamber of Commerce Best Corporate Citizen Awards. The bank further secured four additional accolades, including being ranked among the Top 10 Best Corporate Citizens and taking home the Governance category and Sustainability Champion for the Finance sector titles.

Additionally, HNB was ranked among the World’s Top 1,000 Banks list compiled by the prestigious UK-based Banker Magazine for the sixth consecutive year in 2022, in addition to being crowned the Best Retail Bank in Sri Lanka for the 13th occasion at the prestigious International Excellence in Retail Financial Services Awards 2023 hosted by the Asian Banker Magazine.