The impact of Amana bank (PLC) performance on Islamic banking sector development in Sri Lanka: special reference in Ampara district

Abstract

Amana Bank (PLC) is one of the most prominent banks providing Islamic based services across the country. The reason for the popularity of Amana Bank (PLC) is due to the high recognition and consent of the CBSL. The main objective of this paper is Identify the challenges faced by Amana Bank (PLC) which is impact on its performances, identify the opportunities and solution to develop the Islamic banking sector and emphasizing the importance of Amana Bank (PLC) performance to Islamic banking sector development. This study uses the primary and secondary sources to obtain data. Mainly primary data are collected from employees of Amana Bank (PLC) through the questionnaires. Also secondary data are collected from annual reports and official web sites of Amana Bank (PLC). The results of the study reveals that the Amana Bank (PLC) positively impact on development of Islamic Banking Sector, even though the Bank faces many challenges to practice Islamic Finance, such as Poor in product and Shari’ah knowledge, Lack of trained employees and absence of separate governance framework . The Amana Bank (PLC) has a major responsibility to overcome these as a one and only licensed Islamic Bank in Sri Lanka. Implication of this research will guide for the decision makers, policy makers as well as future researchers.