Local Islamic Finance Industry to grow rapidly
Local Islamic Finance industry is to grow at a double digit rate over
medium to long term, and growth is attributed to the increased awareness
of faith based concepts and the internalization of the financial
Total assets of Islamic finance in Sri Lanka account for 3 % of the
total financial assets of the country while deposits and loans of local
Islamic finance accounts for 5 %.Islamic Finance could play a key role
in the development of infrastructure projects and the capital markets of
the post war era of Sri Lanka.
The booming of the industry and the development of Sukuk market have
the potential to attract investors to finance projects such as roads,
bridges, ports, airports and others. Sovereign Sukuk is a means of
attracting funds alternative to conventional sovereign bond.
Sri Lanka in its drive for rapid development should grasp the
opportunities that emerge due to the transition of Islamic finance into
the mainstream global finance,” KPMG said.
However, lack of qualified professionals in the industry, not only in
Sri Lanka, but across the globe has been the major problem faced by the
industry and total workforce of the local Islamic finance is estimated
to be around 1500.
According to KPMG, Sri Lanka still faces the limitations of
investment avenues for new banks.