LOLC Al-Falaah has launched “Al-Falaah Tawarruq for Personal Finance,” introducing Sri Lanka’s first structured Tawarruq-based Islamic liquidity solution, providing customers with ethical, transparent, and Shariah-compliant access to personal financing.The newly launched facility marks a significant milestone in Sri Lanka’s Islamic finance sector by offering a structured mechanism that enables individuals to obtain liquidity while adhering to Islamic economic principles. It is designed to support a wide range of financial requirements, including education, healthcare, business expansion, personal commitments, and other essential expenses.
Tawarruq is an internationally recognised Islamic finance structure that provides customers with access to liquidity through a series of asset-backed transactions. Under the arrangement, a commodity is purchased on deferred payment through a Murabaha (cost-plus-profit sale) agreement and is subsequently sold to a third party on a spot cash basis, allowing customers to receive liquidity in a Shariah-compliant manner.LOLC Al-Falaah acts as the appointed agent throughout the process, managing the purchase, sale, and resale of commodities on behalf of customers.
The company stated that this approach ensures a seamless, transparent, and efficient transaction while maintaining strict compliance with Islamic finance principles.Commenting on the launch, Shiraz Refai, Head of Alternate Financial Services at LOLC Al-Falaah, said the introduction of the new solution reflects the institution’s commitment to delivering customer-centric and future-ready financial products. He noted that the initiative expands access to ethical finance while strengthening confidence in Sri Lanka’s alternate financial services sector through a solution built on transparency, convenience, and compliance.
Representing the Scholar Supervisory Board, Ash Shaikh Shafique A. Jakhura said the new Tawarruq solution demonstrates how Islamic finance can address modern financial requirements without compromising its core principles. He added that the product has been developed with a strong emphasis on transparency, fairness, and authenticity, providing an effective contractual framework to meet contemporary liquidity needs.
LOLC Al-Falaah stated that the introduction of the structured Tawarruq solution reinforces its commitment to promoting financial inclusion and expanding access to ethically grounded financial services in Sri Lanka. The company added that it will continue to deliver value-driven financial solutions supported by strong governance, industry expertise, and responsible finance practices to benefit individuals, businesses, and the wider financial ecosystem.
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