Sri Lanka will benefit from Islamic banking – Amana Bank Chief

Today is a very special and note-worthy day for me and my colleagues. The day represents the culmination to 15 long years of effort and aspirations to establish a full-fledged Islamic Bank in the country; and looking forward, today marks the transformation of our vision into reality — with the opening of Amana Bank for business. It is my humble privilege to say that Sri Lanka now has, Amana Bank, Sri Lanka’s first full-fledged Shari’ah based bank operating within the laws of this land and, Amana Takaful a full-fledged Shari’ah insurance company.

I feel honoured and happy to witness this day and I would like to express our gratitude and thanks for the confidence placed on us by President Mahinda Rajapaksa and in addition, for the support extended by the Governor and officials of the Central Bank of Sri Lanka. My heartfelt gratitude also goes out to each and every one of the large number of people who rallied around us, be they shareholders, employees, customers or well-wishers throughout this journey.

With the blessings of God Almighty, Amana Bank is poised to offer a new way forward, with a concept that places great value in honour and humanity whilst taking an uncompromising stand on ethics, equity and fairness. This is what is unique about the Shari’ah concept of banking. 

As we have constantly reiterated, the Shari’ah system of banking and economics is not only for Muslims, but is a well-balanced system of economics that is for all mankind, at whose underlying foundational premise, is that money by itself cannot earn a return if it does not take part in the risk that is involved in the generation of returns! In fact in the Shari’ah system idle money attracts a negative return of 2.5% per annum in the form of zakat which is the compulsory charity payable by Muslims. It is ethical because investments in areas that are harmful to society such as gaming, alcohol, tobacco, arms and ammunitions etc. are not permitted. Islamic banks are expected to set a small amount for secured lending to people who are in financial distress owing to circumstance beyond their control, at zero cost. 

Again, just to dispel any doubts one may have, this kind of lending is of relevance to all communities!  In fact, Amana Bank is eager to touch the lives of every Sri Lankan regardless of religion and race, and help drive the country towards achieving her full potential, especially in the context of new opportunities unfolding at this important phase of the country’s history. 

We have set challenging goals for our future and stand committed to achieve them. We are strengthened by a well experienced board and a dedicated family of staff. We will be guided by the Central Bank of Sri Lanka. 

We will draw our experience from our strong group of strategic shareholders. We will be encouraged by our customers and above all we shall stay well-grounded to our belief that being responsible and ethical is as important as making profits and gains. 

We believe that Sri Lanka will benefit from this concept of banking in the same way it has helped to steer countries like Malaysia towards economic prosperity. We are also confident that the Shari’ah Banking principles will lend greater stability to the economy, as was experienced during the recent global economic downturn when, according to many learned studies, institutions following the Shari’ah system were able to withstand the adverse effects of the economic downturn more robustly than those following conventional systems.

It is against this background that President Mahinda Rajapaksa and his able economic team are to be commended for their foresight in licensing this Bank. I am quite certain that Insha’Allah this will be source of substantial goodwill amongst the Arab countries and also be a major catalyst in the attraction of investments into Sri Lanka from the large pool of Shari’ah compliant funds that are seeking investments worldwide. 

I request the Governor and the officials at the Central Bank to facilitate the various facets of Islamic Banking that will really begin to add to the national wealth. Islamic Banking does not see itself as just a glorified lender of money against security! We have plans to develop the rural sector economy and we seek your understanding of the products that we have to offer. 

Islamic finance has the answers to the current travails of the fiat based global system if we have the will to understand and follow through its recommendations.

I would like to pay tribute and offer my prayers to those who participated at the board with us in formulating this vision, but have left this world, the late M. S. Alif, Mohamed Thahir and Justice Jameel. May Allah Swt enlighten their graves and reward them magnanimously!  My very special thanks also go out to  A.I. Marikar, (Mariks as he likes to be called) for the contribution made by him. He and I first sat together at several sessions in the business centre at the Taj Samudra. I wish also to acknowledge the contribution made by Faisz Mustapha. His time for sitting on the board and for consultations with us was all the more valuable, considering the number of clients that he may have had to turn away. Thank you Faisz!

I thank you all for honouring us with your presence and now call upon the Governor of the Central Bank to inaugurate Amana Bank.