LB Finance launches Islamic Finance unit

LB Finance launched its new Islamic Finance Unit Al Salamah. Al Salamah will offer a wide range of financial services including investment accounts, trade financing, leasing and gold loans (pawning), all structured according to the principles of Shari’a Law, and will be available to all Sri Lankans regardless of ethnicity and religion.

In the initial stages, Al Salamah will focus on its Ijarah leasing service, which is one of LB Finance’s main strengths, and will also offer hire-purchase services on Murabah terms and investment accounts on Mudarabah terms.

Al Salamah will also offer a Shari’a-compliant Islamic gold loan (pawning) facility called Ar Rahnu due to intense demand from the Muslim community. LB Finance has been planning to launch this unit for several years but held back due to the turbulent economic conditions in the last few years. Al Salamah’s activities are to be completely independent from the main body of LB Finance, including management and financial accounting.

“Al Salamah is a name which represents safety, security, and integrity,” said Managing Director of LB Finance, Sumith Adhihetty.

“All our operations will be monitored by a qualified Shari’a Supervisory Council to ensure that everything we do is one hundred percent within the Shari’a Law.