- Azeem H.M.M
- Department of Islamic Studies, South Eastern University of Sri Lanka
Banking services have become increasingly essential in the contemporary era of rapid globalisation. Businesses must maintain relationships with financial institutions, whether by choice or necessity. This study examines the implementation of the Mudarabah Contract to facilitate Deposit Products and its associated challenges at Amana Bank, which is registered as a fully Islamic bank in Sri Lanka. The study adopts a qualitative, descriptive-analytical method, complemented by extensive library-based research. This study demonstrates that while the Mudarabah contract is appropriate for issuing deposit accounts, it lacks certain features that are available to depositors in conventional banks. This limitation arises from the nature of the Mudarabah agreement, which is a partnership arrangement without guaranteed capital and profits. Consequently, Islamic scholars have recommended alternative agreements, such as Wadiya, Wakala, Kafalah, and Tawarruq, for the issuance of deposit accounts. Therefore, it is suggested that Amana Bank may incorporate above contracts while they designing deposit accounts rather than merely depends on Mudharabah contract. This study proposes recommendations for structural modifications of deposit products in order to provide diversity of deposits with compatible features with conventional deposits.