Islamic Banking

Feb 02, 2011 (LBO) – The Monetary Board of the Central Bank of Sri Lanka has given a commercial banking license to Amana Bank, a statement said. Islamic banking is an emerging alternative to the interest-based banking practice and is gaining popularity across the world’s communities. “Amana Bank will be Sri Lanka’s first licensed commercial bank to conduct all its business operations in complete harmony with the principles of Islamic banking,” it said.

The bank’s shareholding amounts to 3.4 billion rupees and constitutes both strategic and retail shareholders with the capital raised by a private placement of shares, the statement said.

Its key shareholders are Bank Islam, Malaysia Berhad with a 20 percent stake, AB Bank, Bangladesh with 15 percent, Islamic Development Bank, Saudi Arabia with 10 percent, and Sri Lankan tea exporter Akbar Brothers which has 10 percent.

The bank engaged KPMG Sri Lanka as its financial advisors to the capital raising.

Amana Bank will acquire the assets and liabilities of Amana Investments through an asset purchase agreement, the statement also said.

Amana Bank will commence business du