LOLC launches 'Mudharabah' savings account

By Charmaine FERNANDO

'Say the right thing, in the right manner, with the right intention, said a wise man, and the desired effect will be achieved' quoted Shaik Mufthi Shafique Jakhura, the newest Islamic Banking scholar to join the Shariah Supervisory Board of the Al-falaah Islamic Banking Unit of LOLC at a press conference held at the LOLC Auditorium, Rajagiriya, recently, to mark his official appointment to the board and to launch the country's first Shariah compliant Mudharabah Savings account.

It is significant for LOLC, an A-rated Internationally linked entity to mark two decisive events simultaneously. This is a big achievement within a short span of time.

Today we applaud 'LOLC Al-falaah', the Islamic Banking Unit of the company, firstly, for absorbing an eminent International Islamic Banking scholar, Shaik Jakhura, who brings along with him valuable exposure and experience. Secondly, for launching Sri Lanka's first Mudharabah Savings Account with fully integrated savings pass book and ATM Card said Kapila Jayawardena, Group Managing Director, LOLC.

Mudharabah Savings account is an arrangement made between two parties; an investor (depositor) and entrepreneur (fund manager of LOLC). This enables the investor to carry out the business projects and derive profits which in turn will be shared by the investor and the entrepreneur on a pre-determined ratio agreeable to both parties. Mudharabah offers a range of ethical, Shariah compliant investment options. Islamic Shariah Banking is becoming overtly popular in Sri Lanka due to its appeal to a wider segment of markets, especially the corporates and the industries.

It operates under the supervision and expert guidance of the Shariah Supervisory Board comprising Islamic Scholars the calibre of Shaik M. Fazil Farook, Shaik M. Murshid Mulafer, and now, Shaik Mufthi Jakhura, strengthening its stand in the world of Islamic Financial practices and operations in Sri Lanka.