Islamic Development Bank Buys 10pct in First Sri Lankan Commercial Islamic Bank, Amana Bank with Bank Islam Malaysia, AB Bank Bangladesh, Akbar Brs

06th February 2011, arabnews.com, By M D Rasooldeen

The Jeddah-based Islamic Development Bank (IDB) has taken a 10-percent stake in the first commercial Islamic bank in Sri Lanka, which is to be opened shortly in the island, a senior official from the Amana Bank Limited in Colombo told Arab News Saturday.

Amana Bank Limited, which obtained the provisional approval license from the central bank last year to become a bank, has got the green light from the island's Finance Ministry to operate as a commercial bank in the country.

According to the official, the new bank will start operations in the course of this year.

"Amana Bank will be Sri Lanka’s first licensed commercial Islamic bank to conduct all its business operations in complete harmony with the principles of Islamic banking," he said.

Islamic banking is an emerging alternative to the interest-based banking practice and is gaining popularity across the world’s communities.

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

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

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

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

With the end of the ethnic conflict in all parts of Sri Lanka analysts predict good business for the newly set up bank.

Incorporated in 1997, Amana Investments Limited (AIL), being the investment and financing arm of the group, offers a range of Shariah-compliant financial solutions to its customers. Since its inception, Amãna has emerged as robust trendsetter in Sri Lanka’s financial services sector and shown remarkable growth in business.

Its entire range of products are interest-free and structured on the principles of Shariah equity and fairness and available to all persons, irrespective of their ethnicity. All products are approved by its Ulema Supervisory Council and subject to regular Shariah audits.

Related Info :
• Heraymila of Saudi Arabia's Al Mashal Group Invests in Sri Lanka

Tea Lounge & Education Centre Opened In Colombo, Sri Lanka by Russels Tea

27th September 2010, www.dailynews.lk, By Ramani Kangaraarachchi

The first tea lounge and the tea education centre in Colombo was opened at Elvitigala Mawatha Colombo by Russels Tea on Saturday in the presence of several tea giants in Sri Lanka. Akbar Brothers Director Joseph Sinnaiah said it is very timely that this type of tea education centre is opened in Colombo as tea is the main foreign exchange earner for Sri Lanka. He said that it should be a subject in schools. "The country has opened for tourism and this centre will give immense value to build the image of Sri Lanka in the future," he said.

Six leading tea companies in the country namely Akbar Brothers, Bogawanthalawa Plantation, Ranfer Pvt Ltd, Empire Teas, Amazon Teas and Imperial Tea Exporters have joined in this venture.

Jetwing Hotels Chairman Hiran Cooray has planned to promote the centre as a tourist stop-over.

Sixty types of local and foreign tea grades and samples from countries like China, Taiwan and Kenya are on display. The history of James Taylor and his life style in Sri Lanka is also displayed at the centre.

The Tea Pride magazine an educational book published by Russels Tea Managing Director Russel Perera was one of the highlights at the ceremony. This will be available in hotels and with travel agents. This was designed to attract tourists and local visitors.

The first book was presented to Akbar Brothers Director Joseph Sinnaiah.

Image: Russels Tea Managing Director Russel Perera presenting the Tea Pride magazine to Akbar Brothers Director Joseph Sinnaiah.