Murābaḥah Financing in Al-Noor Islamic Window of Bank of Ceylon and Its Scope of Ability to Respond Sri Lankan Muslim Minority Needs: A Juristic Study in Light of Maqāṣid al-Sharīʿah

This research paper explores the Murabahah product offered by Al-Noor Islamic window at the Bank of Ceylon in Sri Lanka. The phenomenon of Islamic windows within conventional banks, which is rooted in interest-based (usurious) systems, presents a new challenge to contemporary Islamic banking frameworks. However, the Islamic window faces several challenges, particularly because it operates within a traditional, usurious banking structure. These issues need to be carefully examined and addressed, with a focus on the jurisprudential concerns that arise, which require solutions that align with the context of the Sri Lankan Muslim minority. This is because the capital acquired to establish the Islamic window and the scope of autonomy of its activities and banking products, such as Murābaḥah, necessitate jurisprudential adaptation from the perspective of Maqāṣid al-Sharīʿah. From this standpoint, this study examines the application of Murābaḥah financing at Al-Noor Islamic Window of the Bank of Ceylon, considering it as one of its products in light of Maqāṣid al-Sharīʿah. This study employs an inductive approach to gather and review relevant materials, along with an analytical and comparative approach for explanation, conclusions, and discussions. The findings suggest that, while the Murābaḥah product in Al-Noor window operates with some degree of independence, it still requires further development and should be evaluated in the context of banking windows in other countries. This would help to ensure the alignment of jurisprudential solutions with local contexts. Likewise, raising the awareness of Islamic banking is essential for promoting the national economy, safeguarding and developing financial assets, and thus changing the narrow perceptions of the non-Muslim majority toward Islamic finance.