Reassessing Institutional Zakāt in Sri Lanka: Jurisprudential Approaches to Collection, Distribution and Investment

This paper evaluates the practice of Zakāt in Sri Lanka, with particular emphasis
on the divergent juristic approaches adopted in addressing Zakāt-related issues.
Although Zakāt, one of Islam's foremost social finance instruments, has been
institutionalized and practiced for several decades within Sri Lanka's Muslim
minority context, its broader socio-economic objectives remain unattainable. This
situation necessitates a critical examination of the existing institutional framework
to identify the factors contributing to its limited effectiveness. The study argues that
the jurisprudential methodology adopted by Sri Lankan Muslim scholars is a
significant factor influencing the performance of Zakāt institutions. Two major
juristic approaches are evident in the Sri Lankan context: the single-madhhaboriented approach and the cross-madhhab approach. Accordingly, this paper
analyzes the implications of these approaches for Zakāt collection, distribution, and
investment. The research employs a qualitative content analysis based on data
gathered through interviews and a review of relevant secondary sources. The
findings indicate that the reliance on a classical juristic approach in addressing
contemporary Zakāt issues is one of the primary reasons for the limited
effectiveness of Zakāt institutions. The study concludes that an alternative
jurisprudential methodology incorporating a cross-madhhab approach offers
greater potential to address modern Zakāt challenges and to enhance the socioeconomic impact of Zakāt in the multi-religious Sri Lanka.