LOLC, being originated from one of the smallest economies and countries in the world, has now taken finance services to 26 countries, Krishan Thilakaratne, Director, CEO LOLC Finance told the launch of the LOLC AI-Falaah’s “Al-Falaah Tawarrug for Personal Finance,” the country’s first structured Tawarruq-based lslamic liquidity solution (which is first in the industry and in South Asia) held in Colombo yesterday.
“We are Sri Lanka’s first to export financial services. Islamic Finance started with LOLC Finance 20 years ago from a non-Islamic country. And now, with the same learning that we have had, we are taking Islamic Finance to the rest of the world.”
Thilakaratne said last week they launched Islamic Finance in Pakistan and Islamic Finance would also be launched in Indonesia and Egypt. They would be taking Islamic Finance to the majority Islamic-dominated countries from the learning’s from Sri Lanka in the future. Meanwhile, further strengthening its position as Sri Lanka’s leading alternate financial services provider, the launch marks a significant milestone in the evolution of Sri Lanka’s Islamic Finance landscape, offering customers a practical and ethically grounded avenue to access liquidity.
Developed in response to the growing demand for alternate financial solutions, Al-Falaah Tawarrug for personal finance provides a structured, transparent and accessible mechanism for customers to obtain liquidity while remaining aligned with Islamic economic principles. The solution is designed to support a wide range of financial needs, including education, healthcare, business expansion, personal commitments, and other essential expenditure.
Tawarruq is a globally recognised concept that enables customers to access liquidity through a series of asset-based transactions. Under this arrangement, a commodity is purchased on deferred payment through a Murabaha (cost-plus-profit sale) agreement and subsequently sold to a third party on a spot cash basis, generating liquidity in a manner compliant with Murabaha principles.
LOLC AI-Falaah acts as the appointed agent throughout the transaction process, facilitating the purchase, sale and resale of commodities on behalf of the customer. This ensures a seamless, transparent and efficient experience while maintaining strict adherence to underlying product principles. Commenting on the launch, Shiraz Refai, Head of Alternate Financial Services at LOLC AI- Falaah, stated, “At LOLC Al-Falaah, our commitment is to provide customer-centric and future-ready solutions that empower individuals and businesses to achieve their aspirations with confidence. The introduction of Sri Lanka’s first structured Tawarruq liquidity solution represents Sri Lanka’s or South Asia’s first commodity-based consumer finance product, 100% compliant with Islamic economic principles and is an important step in expanding access to ethical finance while reinforcing trust in alternate financial services. Designed with transparency, convenience, and compliance at its core, this solution offers customers a practical pathway to meet their evolving financial needs.”
Sharing his views, Ash Shaikh Shafique A. Jakhura, representing the Scholar Supervisory Board, stated, “AI-Falaah Tawarruq for Personal Finance solution reflects the ability of lslamic finance to address contemporary financial requirements while remaining firmly rooted in its foundational principles.
Source: Daily News
