Sri Lanka (Common Wealth) _The Leasing Association of Sri Lanka (LASL) is optimistic about the future of the Sri Lankan leasing industry, given the country’s economic stability. The Leasing Association of Sri Lanka (LASL) stressed that with normalcy restored in all aspects of the country following the economic crisis, there will be more economic activities in the country with a healthy economic climate.
Currently, the leasing and finance sectors benefit from a highly effective relationship with the Central Bank via meetings with the Governor and important staff. In order to facilitate the long-term development, expansion, and sustainability of the two sectors that operate in the same market area, It is relevant and suitable to consider the prospect of aligning our macro vision with that of government officials in order to accomplish the mutually desired aim of higher economic development, according to LASL sources.
A lease is a contract between two parties, the lessee (right to use the lessor’s assets) and the lessor (owner of the assets), in which the lessee acquires the contractual right to use the lessor’s asset for a specific amount of time and under certain circumstances.
Leases are grouped into many types based on the differences in the elements of a lease. The most commonly heard leases are financial and operating leases. Other options include sale and lease back and direct lease, single investor leasing and leveraged lease, and local and international lease.
Lease is a crucial financing option for an entrepreneur who does not have enough money to finance the initial investment in equipment and machinery. The lessor finances the item or equipment in a lease, and the lessee uses it in exchange for fixed lease rentals.
In other words, lease financing is a contract in which the lessee obtains financing from the lessor in exchange for agreed-upon rental payments. This type of lease is known as a financing lease. There are numerous similar arrangements, and thus numerous forms of lease.
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. Its ‘over the counter’ availability increased its appeal. Its appeal among SMEs expanded as well.
The Central Bank of Sri Lanka (CBSL) recently published a list of Finance Leasing Establishments (RFLEs) that have been registered under the Finance Leasing Act (FLA) No. 56 of 2000.According to the CBSL, it is an offense to conduct finance leasing business without being registered under the FLA.
Commercial banks, specialty leasing businesses, and finance corporations compose the leasing industry. As a result, there are 12 licensed commercial banks, 39 licensed finance companies, 4 licensed specialty banks, and 3 licensed credit unions, Commercial banks, specialty leasing businesses, and finance corporations compose the leasing industry. As a result, the CBSL has registered 12 Licensed Commercial Banks, 39 Licensed Finance Companies, 4 Licensed Specialized Banks, and 3 Specialized Leasing Companies to carry out “finance leasing business” as defined by the FLA.
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.
