'Bank of Ceylon wide network demonstrates true value of Islamic financing'

As Islamic finance gains ground across global markets, discussions around its principles, inclusivity, and long-term potential have become increasingly important.

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Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi MARA (UiTM), Johor, Malaysia Senior Lecturer Dr. Mohideen Nayeem

In Sri Lanka, where awareness and adoption of Islamic banking continue to grow, questions often arise about how it differs from conventional systems, whether it serves only Muslim clients, and how it aligns profitability with ethical values.

Following an exclusive interview with Dr. Mohamed Mohideen Nayeem, Senior Lecturer at the Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi MARA (UiTM), Johor, Malaysia. With over a decade of experience in teaching, research, and community engagement, Dr. Nayeem specialises in Islamic Law, Islamic Banking, and Muslim Minority Studies.

In this interview, he discusses the guiding philosophy of Islamic finance, how it differs fundamentally from interest-based systems, its relevance to both Muslim and non-Muslim customers, and the vital role institutions such as the Bank of Ceylon can play in deepening public understanding and innovation within the sector.

Below are excerpts of the interview;

This is a very common and crucial question asked by many people. They think Islamic banking is the same as conventional banking with Arabic names, or what they call “conventional banking in Islamic clothes.” But in fact, it is fundamentally different in its principles, objectives, and operations.

Islamic banking is founded on the basic teachings of Islam. The Quran and the traditions of Prophet Muhammad provide the core principles for the financial system. Islamic banking adheres to Shari'ah law, which emphasises ethical finance, the prohibition of interest (riba), and the promotion of social justice, whereas conventional banking focuses on an interest-based, profit-driven model with fixed returns.