Ravi K calls for urgent reforms in leasing sector

6 August 2025 02:10 pm Views - {{hitsCtrl.values.hits}} 6 Bookmark

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Colombo, August 6 (Daily Mirror)- UNP MP Ravi Karunanayake today (06) raised concerns in Parliament over what he described as aggressive and unfair practices in Sri Lanka’s leasing sector, particularly by finance companies regulated by the Central Bank.

Speaking on the matter , Karunanayake said the leasing industry had become heavily one-sided, favouring financial institutions over struggling citizens.

He warned that companies were seizing vehicles and machinery even after 60 to 70 percent of the lease amount had been settled, with little regard for the borrower’s financial condition or circumstances.

He criticised the current regulatory framework that allows asset seizures after just 90 to 150 days of non-payment, arguing that it does not take into account whether the default was due to unavoidable economic hardship such as job loss, illness or the broader economic crisis.

He said such harsh actions erode public trust in the financial system, deepen poverty, and undermine the Central Bank’s credibility as a fair regulator.

The MP further questioned why there were no clear guidelines requiring financial institutions to explore restructuring or settlement options before resorting to seizure.

He also asked whether the Central Bank would consider introducing a grace period or a mediation process, especially for small business owners who depend on leased assets for their livelihood.

In addition, the MP sought clarification on what legal remedies exist for borrowers who claim they were subjected to unfair or hasty repossession, and whether the Central Bank had ever intervened in such cases.

As such, Karunanayake urged the Central Bank to conduct a full review of leasing sector practices and to examine whether a few large finance companies dominate the market due to weak regulation, thereby disadvantaging consumers.

He also called on the Central Bank to urgently adopt a more humane and structured approach to asset recovery—one that distinguishes between willful defaulters and those in genuine distress.

Comments - 6

AkaAD Wednesday, 06 August 2025 02:44 PM

He is a businessman, he must have a personal interest in this issue

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Dr Tissa Fernando Wednesday, 06 August 2025 08:37 PM

Of course , Ravi K is a crocked businessman. He slips through the laws and regulations easily. His CIMA membership should be cancelled because he was suspected of many frauds.

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Sivalingam Thursday, 07 August 2025 08:50 AM

Ravi K is invisible to the CIABOC, remember apartment of Arjun Aloysius.

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Ram P Wednesday, 06 August 2025 04:10 PM

You failed to do the urgent reforms when you were the Minister, may be for a beneficial reason. Now you say the reforms are urgent

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Dr Tissa Fernando Wednesday, 06 August 2025 05:59 PM

But the government banks adopted very human friendly approach and ended up in billions of Rupees of loan defaults. Many are spending the loans for short-term consumptions beyond their regular means, so they end up being unable to pay back the loan. Many do not have a proper business plan so their businesses end up in failure. So if a soft approach is used then in few years time , there will not be a single viable leasing company in the country for good customers to leverage their business activities. But pacha government will not enact any legislation unfavourable to leasing companies because one of their main supporters is running a big leasing company.

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[email protected] Thursday, 07 August 2025 08:17 AM

Willful defaulters are the politicians and connected big businesses run by their fund raisers. Many of them are running multi businesses and evade taxes, pump money, whitewashing via charity, have built the miracle tower or dome of Asia. Ordinary people are in distress.

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