Mr. Shiraz Refai, Head of Alternate Financial Services Unit of LOLC Finance.

LOLC Al-Falaah, the largest Alternate Financial Services Provider in the Non-Bank Financial Institutions (NBFI) segment in Sri Lanka, proudly announced its exceptional financial performance for the fiscal year 2023/24. With a total asset base of over Rs. 31.5 Billion and a client base of nearly 50,000 across 203 branches nationwide, LOLC Al-Falaah continues to lead the Islamic finance industry in Sri Lanka.

In the face of prevailing macroeconomic challenges and the lingering effects of the economic crisis, LOLC Al-Falaah effectively managed its assets and liabilities while expanding its portfolio. The company’s revenue earnings soared to Rs. 6.6 Billion, marking a 35% increase from the previous year. Additionally, LOLC Al-Falaah achieved a remarkable 73% increase in Profit Before Tax, reaching Rs. 1.3 Billion. They also kept its Non-Performing Loan (NPL) levels at a low 7.67%, much better than the industry average of over 10%, displaying how well the company manages risks and operations.

The high demand for their Mudharabha and Wakalah savings products indicates strong trust from investors. In 2023/24, LOLC Al-Falaah paid out Rs. 3.5 Billion in profits to depositors, showing its commitment to giving good returns even during tough economic times. The company also had retained earnings of Rs. 6.7 Billion by the end of the financial year.

LOLC Al-Falaah’s industry leadership is also demonstrated by its numerous awards and accolades. During the year, the company won four prestigious awards at the 12th SLIBFI Awards, including the Gold award for Islamic Finance Non-Banking Financial Institute (NBFI) Entity of the Year for the fourth consecutive year. It also secured two Gold and two Silver awards at the IFFSA Awards 2023, and was named the first Runner-up Islamic Leasing Provider (Global) at the IFN awards.

Positioned to capitalize on powerful synergies following the merger, LOLC Al-Falaah aims to offer a comprehensive range of alternate finance products with extensive reach across Sri Lanka. The company’s digitalization efforts have successfully integrated Wakalah Investments and Mudharabah accounts with iPay, LOLC Finance PLC’s lifestyle fintech app, in addition to real-time internet banking solutions and Visa-enabled international debit cards.

In 2023/24, the company donated Rs. 16.95 Million to charitable causes, including Rs. 10.94 Million for medical aid, Rs. 3.20 Million for education and Rs. 14.81 Million for social upliftment, focusing on providing Ramadan packs during high inflation. In partnership with the Scholar Supervisory Board, Al-Falaah has conducted educational programs to raise awareness and to promote early savings among Grade 5 students. Since 2009, LOLC Al-Falaah has donated Rs. 237.34 Million to support the communities and remains committed to fostering positive impact.

“During 2023-24, LOLC Al-Falaah has not only achieved remarkable financial growth but has also cemented its position as a leader in the industry through community activations, awareness sessions and outstanding awards.,” mentioned Mr. Shiraz Refai, Head of Alternate Financial Services Unit of LOLC Finance.

He further stated, “Our vision for profitability is deeply intertwined with our commitment to product innovation and customer-centric solutions. The launch of the Ijarah ‘Operating’ lease and the Flexi Solution for lending products reflects our dedication to offering flexible and accessible financial options to our clients. The introduction of the Digital Savings and Investment System through the iPay app is a testament to our ongoing efforts to harness the power of digitalization, providing a seamless and efficient way for our customers to manage their financial assets.

“Our continuous investment in public awareness programs and seminars emphasises our commitment to educating communities about Alternate Finance concepts and principles. By fostering a deeper understanding and acceptance of these financial solutions, we aim to create a more inclusive and resilient financial ecosystem. As we move forward, we will continue to leverage our strengths, innovate relentlessly, and uphold our promise to deliver value to all our stakeholders” was the reassurance given by the Head of Alternate Financial Services Unit of LOLC Finance.

LOLC Al-Falaah has firmly positioned Sri Lanka on the alternate financial services map by setting benchmarks in product innovation, compliant product ranges, and social stewardship. As the largest Alternate Financial Services Provider within the NBFI segment in Sri Lanka, LOLC Al-Falaah boasts a strong brand identity and market acceptance and leads its industry space.