Sri Lanka ( Common Wealth) _ The Leasing Association of Sri Lanka (LASL) and the Sri Lanka Vehicle Importers Association (VIASL) attempted to persuade the government to listen to their concerns, emphasizing that it is time to devise a strategy to save the automobile imports and leasing industries from collapse. LASL and VIASL underlined that involvement from the highest level is needed to lift the existing automobile import prohibition.
Unlike the rest of the world, where operational leases are more commonly used leasing arrangements, practically all leases in Sri Lanka are finance leases, with only a few operating leases available. Furthermore, in terms of asset classifications, car leasing accounts for 95% of overall leasing market transactions.
Dr. Ranjith Siyambalapitiya, State Finance Minister, responded to the request speaking in Parliament recently, he intimated that the government is likely to resume automobile imports in order to increase tax revenue. He emphasized that a proposal will be made to create a system in which all payments for automotive imports may be completed in the country where the relevant import occurs. The State Minister also stated that a report on raising tax receipts and protecting the exchange is now being prepared, and the relevant suggestion is ready to be included. He stated that the Customs Ordinance will be amended to allow commodities held at Customs owing to various legal reasons Concerns about being freed on bail while legal processes are underway.
Vehicle leasing is the most common product since there is a ready market for seized vehicles; plant and machinery leasing is more challenging and hence accounts for a small fraction of the leasing industry. Leasing can be expanded to include commercial premises, plant and machinery, and regulated risk controls in order to capitalize on the industry’s unrealized potential.
Leasing has a high growth potential since it is seen as a viable financing solution for supporting small and medium-sized businesses (SMEs).the government’s present policy of attracting foreign investment
The Leasing Association of Sri Lanka is an organization formed to promote, foster, preserve, and safeguard the interests of the Sri Lankan leasing industry.
The Association also plays a vital role in regulating the industry and its players, ensuring that member companies conduct themselves properly. In Sri Lanka, leasing is an industry in which many stakeholders, including the government, are actively involved in day-to-day business operations, resulting in a considerable volume of information useful to the industry and the consumer.
This is to ensure that there is a central repository of all such essential information and that all Leasing Industry players have a common venue to look for and share information. This is also part of a larger effort to make the industry and the Association more relevant to its members and leasing practitioners, as well as to make the industry more accessible and accountable to the broader public.
The Finance Leasing Act No. 56 of 2000 governs leasing. Leasing was introduced to the Sri Lankan market in 1980 and quickly gained popularity as an alternate type of financing. It’s ‘over the counter’ availability increased its appeal. Its appeal among SMEs expanded as well.
