First Barakah Investments Limited is expecting Central Bank approval to operate as a registered finance company shortly.
Managing Director of First Barakah Investments M.I.M Razeek said “we are expecting Central Bank approval shortly to operate as a registered finance company that involves in Islamic financial services. To register as a finance company in Sri Lanka there should be Rs 200 million share capital and we have Middle East investors who will strengthen our share capital”, he said.
The company is confident that it could surpass the required share capital through Middle East funding and is planning to add eminent scholars and business magnates for positions in the Board.
The company also expects to apply for banking licenses within two years time.
Barakah Investments will introduce ‘SUKUK’ an alternative way of bonds in Islamic finance to the market.
The Government of Sri Lanka also expects to raise funds through SUKUK. Most of the governments are involved in this business, he said.
“We hope to introduce the ‘Profit Sharing’ concept in the pawning industry. ‘RAHN’ the alternate of pawning under the Islamic Shari’ah, is based on providing financial assistance to the not so privileged class. The first ‘RAHN’ branch will be opened in Maradana, he said.
The company will open its new branches soon after the April vacations in Beruwela and Kattankudy.
“The present crisis in the local financial sector has resulted in losing customer confidence and trust. It is our duty to stabilize the confidence of customers. Islamic financing enables us to create direct link with our customers,” he said.
“With the assistance of the ‘Sri Lanka Islamic Centre’ the counterpart of the ‘Islamic Development Bank’ Saudi Arabia, we are in the process of establishing our Micro Finance Units in the Eastern Province and other areas where internally displaced people are stationed.