Ṣukūk Waqf for the Development of Religious and Trust Institutions in Sri Lanka

Ṣukūk has emerged as one of the most significant financial instruments for mobilising funds in the modern Islamic financial system. In this context, this paper explores the innovative application of Ṣukūk waqf as a strategic mechanism for the sustainable development of Islamic religious institutions and trust assets. Over the past few decades, there has been a notable decline in the performance and functionality of religious institutions and trusts in Sri Lanka. This deterioration is largely attributed to the inadequate development and mismanagement of waqf assets, many of which remain underutilised and neglected. The underlying causes of these challenges are primarily linked to ineffective trusteeship, lack of proper governance frameworks, insufficient innovation in asset development, and the absence of systematic planning aligned with contemporary standards and needs. Against this backdrop, the study introduces the concept of Ṣukūk waqf as an innovative financial mechanism aimed at revitalising and enhancing the role of waqf assets in supporting religious and charitable activities. Methodologically, the study adopts a qualitative approach for data collection and analysis. It draws upon a wide range of secondary sources, including scholarly books, academic theses, peer-reviewed journal articles, and other relevant materials, with a particular focus on the practical implementations of Ṣukūk waqf in various international contexts. By presenting selected case studies from contemporary settings, the research aims to provide conceptual insights into the proposed model's feasibility and anticipated impact