Leasing and Instalment Payers’ Association Meets Opposition Leader Over Vehicle Repossessions

The Association of Leasing and Instalment Payers met with the Leader of the Opposition, Sajith Premadasa, to discuss concerns regarding the repossession of leased vehicles and the need for changes to existing legislation.

According to the association, there had recently been instances where financial institutions had used third parties to repossess leased vehicles in violation of the law. The association said it had briefed the Opposition Leader on the new measures introduced by the Police and stressed that the time had come to introduce new legislation on the matter.

Following the meeting, Asanka Ruwan Pothupitiya, President of the Association of Leasing and Instalment Payers, spoke to the media.

He said:

“We discussed a number of matters with the Opposition Leader.

Based on proposals we made regarding the unlawful seizure of vehicles by vehicle repossession agents, the Inspector General of Police has issued a circular. We are pleased with that development.

However, a new law needs to be introduced because the existing legislation is outdated.

We requested the Opposition Leader to raise this matter in Parliament.”

The association’s Secretary also expressed views on the matter.

Sri Lanka Police recently clarified that under the Finance Leasing Act No. 56 of 2000, leasing companies and their authorised representatives must follow specific procedures when repossessing leased property. Police officers may provide protection to maintain public order when properly requested, but they are not permitted to physically assist in repossessing vehicles. Where a lessee resists repossession, the lessor must seek legal relief through the relevant District Court.

The Central Bank of Sri Lanka regulates and supervises registered finance-leasing establishments under the Finance Leasing Act.