Best Islamic bank: BOC An-Noor
Bank of Ceylon (BOC) An‑Noor Islamic Banking demonstrated a strong, well-executed model that justifies its position as the best Islamic bank in Sri Lanka in 2025. The franchise combines scale, financial performance and governance discipline within a systemically important institution, delivering commercial and ethical outcomes.
The bank achieved robust financial growth during the review period. Total deposits increased by 23.5% to LKR9.2 billion, while advances expanded by 51.4% to LKR5.4 billion, supporting a 37.5% increase in overall business volume to LKR14.3 billion. Operational profit rose sharply from LKR110 million to LKR547 million, reflecting a 397% increase driven by improved efficiency and scale. Revenue from Shariah‑compliant activities reached LKR455 million in 2025.
This growth has been supported by a nationwide, decentralised model across 657 branches, transforming Islamic banking into an accessible, mainstream offering. The strategy has strengthened financial inclusion, particularly in underserved regions, while maintaining discipline through a 52.9% reduction in non‑performing facilities.
Governance remains a defining strength. A dedicated Shariah Supervisory Board and full‑time in‑house adviser oversee all products and transactions, ensuring strict compliance across the value chain. This is complemented by transparent purification practices and a structured audit framework.
The bank’s proposition is comprehensive across retail, small and medium-sized enterprises (SME) and corporate segments, offering asset‑backed, profit‑sharing solutions such as murabaha, ijara and wakala. It also plays a leadership role in market development, including participation in Sri Lanka’s first listed sukuk.
Beyond financial performance, the bank has delivered measurable social impact, supporting 25 community projects with LKR1.5 million in 2025.
Best Islamic transaction bank: Al-Adalah
Al-Adalah, the Islamic banking unit of Commercial Bank of Ceylon, has emerged as the clear leader in Sri Lanka’s Islamic transaction banking market, by combining rapid business growth with a disciplined commitment to Shariah-compliant banking principles.
Operating as a dedicated Islamic window within the country’s largest private bank, Al-Adalah has successfully leveraged the scale, technology and reach of its parent while maintaining strict segregation of Islamic funds and governance through an independent Shariah Supervisory Council.
The strength of its franchise was reflected in an exceptional performance during 2025. Gross financing more than doubled year-on-year, while total assets increased by 67%. Deposits also grew strongly, despite a highly competitive savings environment. Much of this growth was driven by increasing demand for Shariah-compliant financing solutions, particularly through diminishing musharakah and ijarah structures supporting small and medium-sized enterprises (SMEs), trade activity and renewable energy projects.
Al-Adalah’s transaction banking proposition is built around a comprehensive suite of Islamic cash management, trade and financing products. These include murabaha-based trade finance, musawamah import financing, wakala working-capital facilities, Islamic swaps and forwards, and al kafalah guarantees. Together, these products provide corporates and commercial clients with Shariah-compliant alternatives across the full spectrum of transaction banking needs.
Technology has also been central to the bank’s success. Customers benefit from access to Commercial Bank of Ceylon’s digital ecosystem, including the ComBank Digital platform, Q+ payment app, ePassbook and the TradeLink trade portal. These capabilities allow Islamic banking clients to access modern digital payments, account management and trade services without compromising Sharia principles.
