PMF debuts in Sri Lanka’s Islamic finance market with SIDQ 

PMF Finance Chairperson Malik Cader

By Divya Thotawatte 

Amid growing interest in ethical and alternative financial services, PMF recently unveiled SIDQ, its new Islamic Finance Unit, with a range of Shariah-compliant services aimed at expanding inclusive solutions for customers around Sri Lanka. 

The new unit offers Islamic financial services built on principles of transparency, fairness, asset-backed financing, and shared prosperity. These solutions will be offered as an alternative pathway for customers seeking values-aligned financial services, while also targeting underserved segments of the market. 

Branded as SIDQ Islamic Finance, the initiative was officially inaugurated on 8 June, marking an important milestone in PMF Finance’s 43-year journey. The High Commissioner of Malaysia to Sri Lanka Badli Hisham Adam attended as the Chief Guest, while the event brought together senior corporate leaders, financial sector professionals, and diplomats to celebrate the launch of the new business unit. 

Speaking at the inauguration, the Malaysian High Commissioner highlighted the significance of expanding into Islamic finance where in Malaysia, it had evolved into a trusted financial system utilised by both Muslims and non-Muslims. He noted that the model›s underlying principles and practices had broadened its appeal beyond the religious considerations.  

“This marks an important step towards promoting greater financial diversity and ethical financing practices in the country. Malaysia firmly believes that Islamic finance is not merely an alternative financial system, but a practical and inclusive model that can contribute meaningfully to economic resilience and sustainable development.” 

Since its establishment in 1963 with the Pilgrims Fund Board (Tabung Haji), Malaysia›s Islamic finance system had developed into a comprehensive ecosystem, Adam says.  He explained that the system had contributed to Malaysia›s economic development by enhancing financial inclusion, attracting foreign investment, and diversifying the country›s banking sector through the coexistence of conventional and Islamic financial systems. 

“With its strategic location, diverse economy and growing interest in alternative financing solutions, the country is well-positioned to further develop its Islamic financial sector. Malaysia stands ready to share our experiences, expertise and best practices with the Sri Lankan people, particularly in areas such as regulatory development, capacity building, education and training, and financial innovation.” 

PMF Finance Chairperson Malik Cader said that the creation of the unit was driven by both market demand and the company›s objective of widening access to financial services. He explained that Sri Lanka›s Muslim community had long shown interest in Shariah-compliant financial products, and discussions with key stakeholders, including international business partners in the automotive sector, had stressed the absence of Islamic finance services in PMF Finance’s portfolio. 

“We recognised that there is a need for Islamic finance. We brought it to the Board. The Board was unanimous that we should embark on this mission,” Cader said, adding that the initiative would enable the company to serve customer segments that were previously underserved while also creating new opportunities for business growth. 

He further emphasised that Islamic finance is increasingly gaining acceptance and popularity in Sri Lanka due to its ethical foundations and transparent approach to financial transactions. 

PMF Finance currently operates 23 branches across the country and plans to expand further, including the Eastern Province where the company sees potential for Islamic financial services. “With this product, we will basically go to the Eastern Province very soon… Sri Lanka has a very thriving Muslim business population and they are also waiting to support us in this initiative.”

PMF Finance CEO Prof. Dewasiri Jayantha noted that the launch of SIDQ was an important step in PMF Finance’s evolution. He said, “Today is not just merely a launch of a new business unit. We consider it the launch of a new vision, new opportunity, and new commitment to ethical, inclusive, and value-driven finance.” 

Jayantha noted that the global Islamic finance industry had grown into a multi-trillion-dollar sector spanning Asia, the Middle East, Europe, and Africa. He highlighted that similarly, Islamic finance principles, which focus on fairness, responsible financial practices, and asset-backed transactions, could contribute well to Sri Lanka›s efforts to promote entrepreneurship, support small and medium-sized enterprises (SMEs), and strengthen long-term economic resilience. 

“Through SIDQ Islamic Finance, we aspire to offer innovative financial solutions that are compliant with Islamic principles while addressing the diverse financial needs of individuals, entrepreneurs, and the business sector across Sri Lanka.” 

- Pix by Shehan Gunasekara