LOLC introduces Islamic banking solutions

Lanka ORIX Leasing Company PLC (LOLC), ventures into a range of Shari’ah compliant financial products in Islamic banking as an initiative to tap the growing market concern.
Head of Branch, LOLC, Shiraz Refai said that they will continue to make a vital contribution towards the growth in this sector through innovative services availble in other parts of the globe.
“This initiative is a step taken towards enhancing quality of products and providing a wider range of fanatical solutions which will also merge with religious and cultural needs of Islamic communities, which is a growing need and of which only around 20 per cent market has been taped in Sri Lanka, he said. We are the only Central Bank approved product to mobilise Shari’ah compliment deposits, which is a wonderful way with many banking benefits,” he stressed.
Speaking of LOLC’s decision to introduce Islamic financing , he said, “ The entry of LOLC Group into the arena of Islamic financing will add momentum to the growth of the product innovation and countrywide distribution through its strategically placed branch network, he said. We in the future wish to venture into regional markets like India and Malaysia where we see lot of potential in, with this special product”.
With US$ 600 billion asset base and a 35 percent annual growth as in last year’s survey, even the non-Islamic communities, around the globe, see Shari’ah as a very beneficial financial solution, where world commerce: financial institutions and education are giving importance to Islamic finance: this has evolved from being a niche market to becoming a mainstream component of global banking and is recognised by international bankers and economists, he added.
President Shari’ah Supervisory Board LOLC Shakih Fisil Farook said that this system will be more successful once it reaches communities across the country, towards which LOLC is working hard. The newly set up unit will be manned by well trained individuals in Islamic trade to implement the best quality of product Shari’ah, he said. We wish that LOLC will be the best financial solution provider, with the new venture into Islamic banking, he added.
The Islamic Banking Unit - Shari’ah will contain and offer services under Ijarah (Leasing), Murabaha (Trade Finance), Mudhabarah (Profit Sharing Investments) and Diminishing Mushrakah (Property Financing), and will be supervised by the Shari’ah supervisory board in order to assure that the services are strictly guided by the Shari’ah principles.