Janashakthi Finance AFBU sets standard for ethical and Shariah-compliant finance in Sri Lanka

Sithambaram Sri Ganendran	Saminda Ratnayake

Janashakthi Finance PLC is redefining ethical investment in Sri Lanka’s non-banking financial sector by delivering innovative, Shariah-compliant financial solutions that respond to the growing demand for responsible, ESG-aligned and faith-based investments. 

As investor preferences continue to evolve, the company is well-positioned to unlock new avenues of growth within the alternative finance space.

Launched in 2021 as the Alternative Finance Business Unit (AFBU), a dedicated business unit within Janashakthi Finance PLC, the AFBU operates under the licence of the Central Bank of Sri Lanka, offering Shariah-compliant financial solutions with all products fully compliant with the Shariah principles. The unit is committed to empowering individuals and businesses across communities by providing ethical, transparent and value-driven financial solutions that support long-term, sustainable growth.

Spearheading ethical finance with expertise and trust, the AFBU is guided by independent Shariah advisors and a team of specialised Islamic finance professionals. Combining deep technical expertise with rigorous governance, the unit offers solutions ranging from Wakalah term investments (agency-based ethical investment structures) enabling participation in approved ethical ventures to Ijarah vehicle leasing options (Shariah-compliant leasing solutions) designed to be both practical and accessible. These offerings reflect a broader shift towards financial solutions that integrate performance with responsibility.

“Our mission is to make ethical, Shariah-compliant financial solutions accessible and trustworthy for all Sri Lankan investors,” said Janashakthi Finance Chief Executive Officer Sithambaram Sri Ganendran. 

“We see a strong potential for growth in this space as more investors seek opportunities that align with both financial returns and ESG considerations. Our focus is on building a platform that delivers both financial value and ethical integrity.”

Building credibility through governance and transparency, the AFBU’s processes emphasise oversight, accountability and customer confidence. Quarterly contract reviews, real-time fund monitoring and regular site visits ensure that every investment aligns with both regulatory requirements and clearly defined ethical standards. This disciplined approach strengthens trust and reinforces Janashakthi Finance’s position as a credible player in the evolving alternative finance landscape.

“We take a portfolio-led approach to designing our offerings, ensuring they address a diverse spectrum of investor needs while maintaining flexibility and a strong commitment to ethical principles,” said Janashakthi Finance Head of Channels Saminda Ratnayake. 

“As awareness of ethical and ESG-linked investing continues to grow, our focus is on broadening access to these solutions and ensuring they remain relevant, practical and aligned with the evolving investor expectations.”