Contribution of Islamic economic models to the economic growth in Sri Lanka: with special reference to Islamic banking unit of BOC head office since 2012 till 2016

Abstract

Islamic economic is based on a paradigm which has socio-economic justice as its primary objective (Qur’an, 57:25) and Islamic banks and financial institutions are use economic models to achieve their target based on Shariah law. The main objective of this study is to empirically analyze how the Islamic Economic Models contribute to the Economic growth in Sri Lanka. There are Murabaha, Mularabah, Musharakah, Ijara, Salam, and Istisna etc. Therefore, this study examines the impact of selected Islamic economic models and economic growth in Sri Lanka. This study follows quantitative method by employing cross sectional data context analysis. The data is collected from BOC bank through the period 2012-2016. The researcher applied statistical package for Micro soft Excel computer software package. This study is identified the how the Islamic model contribute to the economic growth in Sri Lanka. Findings indicate that there is a relationship between selected Islamic economic models and economic growth in Sri Lanka from the sample point of view. The study recommends for indicate that improving the infrastructure of Islamic economic models in Sri Lankan Banking system it’s contribute to economic growth in our country.