Business

LOLC Al-Falaah launches Sri Lanka’s first structured Tawarruq-based personal finance solution

Published

3 months ago

2026/07/15

Ash-Shaikh Shafique A. Jakhura (Mufti), Chairman / Shiraz Refai, Head of Al-Falaah

Further strengthening its position as Sri Lanka’s leading alternate financial services provider, LOLC Al-Falaah has introduced “Al-Falaah Tawarruq for Personal Finance,” the country’s first structured Tawarruq-based Islamic liquidity solution. 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’s Tawarruq 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 expenditures.

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 Al-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.

The introduction of this pioneering solution comes at a time when customers are increasingly seeking financial products that combine flexibility, transparency, and ethical responsibility. By formalising and institutionalising the Tawarruq structure within Sri Lanka’s financial sector, LOLC Al-Falaah is expanding access to faith-based financial solutions while elevating industry standards.

Commenting on the launch, Shiraz Refai, Head of Alternate Financial Services at LOLC Al-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 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, “Al-Falaah Tawarruq for Personal Finance solution reflects the ability of Islamic finance to address contemporary financial requirements while remaining firmly rooted in its foundational principles. Developed with a strong emphasis on transparency, fairness, and authenticity, the solution provides a contractual framework that responds effectively to real-world liquidity needs. It also demonstrates the adaptability of Islamic finance in delivering relevant and impactful solutions within today’s dynamic financial environment.”

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

20 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

20 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

20 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.