It gives me immense pleasure to be with you in this
pleasant evening. The organizers of this memorable
event insisted that I also share some of my thoughts
with the distinguished invitees.
Man is not only mortal but also
erring. His knowledge and power of judgment are
also limited. He, therefore, needs guidance. Guidance
may come from man or the supernatural. Guidance
from man of restricted power or resources is bound
to be limited and imperfect. Only the guidance from
the sovereign eternal power is reliable, perfect
and truthful. Allah, the sovereign Lord guides mankind
through his books and prophets for their benefit.
This guidance came through the first man Prophet
Adam (Alaihis salaatu wassalaam) and continued through
other prophets, and the message of guidance was
completed and given a final shape for entire humankind
with the last Prophet Muhammad (Sallallahu alaihi
wasallam) in the final book, the Holy Qur’an.
This fact is proclaimed in the following verse of
Al-Qur’an:
“This day have I perfected
your religion for you, completed my favour upon
you and have chosen for you Islam as religion.”
(05 : 03)
This divine guidance is Islam.
So, Islam is a code of life based on creator –
creation relationship, and it guides and motivates
man to do the good and avoid the evil. Allah Ta’ala
says:
“Verily this Qur’an
doth guide to that which is most right.” (17
: 09)
Islam is an Arabic term that means
submission and obedience. It is complete submission
to the will of Allah. The Almighty says:
“O ye who believe! Enter
into Islam perfectly, and follow not the footsteps
of Satan.” (02 : 208)
This complete and all-embracing
divine code of life cannot be confined to certain
rites or rituals performed in places of worship
alone. In Islam’s view, worship includes not
only prayers but all activities as a good person,
as a loving member of the family and as a dutiful
citizen of the society at large. Islam establishes
brotherhood of humanity for peace and harmony. It
touches every aspect of man’s life –
personal, family and social.
To put it in a nutshell, Islam
is the moral kingdom of Allah for one brotherhood
of mankind to establish peace and tranquility in
this world and hereafter. It is the religion of
worship of one creator practiced in good deeds and
piety.
As a religion encompassing all
aspects of man’s life, it guides him in terms
of earning and spending. It has laid down very clear
ground rules and ethics for trade, commerce, finance,
and all other money and commodity related activities.
Today the much talked about Islamic Banking and
Finance even is not a new theory. It is as old as
Islam. Just because Muslims failed to practice Islamic
Banking and Finance to the letter in some ages or
places, it should not be construed that it is a
set of mere rules and regulations made by Islamic
scholars in the recent past.
To put the record straight, Islamic
Banking and Finance is an integral part of Islam
which every Muslim is expected to practice. Meanwhile,
it is not confined to Muslims; but open to non-Muslims
too. It is so open that one is not to be considered
a convert to Islam just because he practices Islamic
Banking and Finance.
There was a time when the colonists
imposed on all the people irrespective of faith
their own man-made economic theories which are devoid
of equity and fair play and involve interest, injustice
and uncertainty. As a result, Muslims who were under
imperialism were indeed unable to carry out their
business activities, standing within the ambit of
Islamic Shari’ah. Just after World War II
when a large number of Muslim countries gained independence
from colonial rule, the Muslim scholars started
contemplating independent Islamic Economics in a
bid to ensure that the Muslims are on the right
track again in terms of trade, commerce, banking
and finance.
Consequently the world has once
again got the chance of witnessing the Islamic Banking
and Finance in practice in both Muslim and non-Muslim
countries alike. It is of course noteworthy that
Muslims and non-Muslims both benefit enormously
from this infallible economic system.
Islam in general does not lay down
the rules alone; but it formulates a framework for
their application. This framework requires inter
alia application of rules and ethics both side by
side. Islamic Banking and Finance is not an exemption.
Its structure is complete with application of regulations
and etiquette, good governance, professionalism
and efficient service. This is all termed ‘Shari’ah
Compliance’.
Since Islamic Banking and Finance
is directly connected to Islamic Shari’ah
and Shari’ah compliance is first and foremost
in the whole operation of the companies that offer
this service, it is natural that it has to be continuously
monitored by Islamic scholars. For this obvious
reason, the regulators have made it compulsory for
each institution of this nature to have a comprehensive
Shari’ah supervisory board. So, the Board
of Directors is responsible for running the establishment
in accordance with Shari’ah principles and
values and the Shari’ah Supervisory Board
is responsible for ensuring that the operation is
in line with Shari’ah. This is where complete
transparency is badly needed.
Shari’ah is in everything
and for everything. The entire operation must conform
to Shari’ah. Showing Shari’ah in front
and face and ignoring it behind the curtain is violation
of Shari’ah and taking people especially the
investors for a ride. It should, also, be noted
that Shari’ah compliance is not complete by
mere paperwork only. It needs physical application
to be completed.
All Ceylon Jamiyyathul Ulama which
has undertaken in the interests of Islam and general
public to play the role of regulators, has recently
introduced a new set of guide-lines for the firms
engaged in Islamic Banking and Finance. All such
companies are duty-bound to abide by them.
From time to time whenever opportunities
come to assemble those of us who are in the field
academically and practically, we exchange our views
and thoughts particularly on urgency of legislation
to allow fully-fledged Islamic banks to operate
in the country. But no concerted effort has so far
been made to convince the Central Bank. Our blessed
motherland has potential to be a hub of Islamic
Banking in South Asia and is lucky enough to have
people with wisdom, know-how, skills, expertise,
etc. to help formulation of a framework for fully-fledged
Islamic Banking practice. The present Islamic banking
institutions have already proved that the Islamic
Banking Industry is highly practicable. By and large,
it is our duty to make a collective attempt to persuade
the Central Bank to take the initiative with regard
to bringing necessary legislation.
Thanks to Almighty Allah. Hitherto we, Shari’ah
Supervisory Board, see People’s Leasing –
Islamic Financial Services Unit running the show
in conformity with Shari’ah. We conduct Shari’ah
audit biannually and issue an audit report based
on our independent opinion formed from the audit.
In spreading its wings, People’s
Leasing – Islamic Financial Services Unit
has identified first Kandy, a historical city of
the Island as potential place next to Colombo. We
ardently hope that the Company and the clientele
both will benefit from each other, a win-win situation
Islam emphasizes.
Thank you. “Jazaakumullahu
khaira”.
