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Complains continue over leasing moratorium violations

02 Sep 2021

  • Customers urge Central Bank to involve and resolve
  • Central Bank says ‘take it up with leasing companies’
Despite the moratorium that has been announced by the Central Bank of Sri Lanka (CBSL), leasing companies are charging customers penalty interest and are even seizing leased vehicles, the Joint Association of Leasing and Debt Installment Payers claimed. During the press briefing that was held last Saturday (28 August), the Joint Association General Secretary Asanka Ruwan Pothupitiya pointed out that the measures taken by the CBSL have been continuously violated by the leasing companies. He added that the Central Bank not taking any legal action against such companies creates a reasonable doubt as to whether the Central Bank is tacitly approving these violations. However, the Central Bank recently told us that such issues have to be taken up with the relevant institutions first and that they cannot do anything if consumers choose to complain directly to the Central Bank. Pothupitiya further said: “The Leasing Act 2000/56 needs be amended since the aforementioned act has blatantly violated the rights of the consumer, indicating that consumer needs to be protected with regard to leasing, paying and finance facilities.”   He explained that when a lease has been obtained, the consumer is supposed to pay that within an obligatory period of time. However, due to the pandemic and the quarantine curfew,the majority have lost the source of income. Thus, he emphasised,  providing relief on such grounds saying that the Joint Association 30-40 complaints on this regard. Accordingly, Pothupitiya suggested that CBSL needs to act upon the people of the country by immediately regulating leasing institutions while serving justice to the victimized people of the country. Moreover, the convener Sanjaya Mahawatt expressed that these have been issued due to the lack of regulations by the Insurance Regulatory Commission of Sri Lanka. He elaborated that due to this lack of regulations, the Sri Lankan consumers are subjected to unfair treatment in a subtle manner. He also inquired about the status of the $ 10 million that was granted under the World Bank through the FSMA project.  The Joint Association Media Secretary Sumedha Amarasinghe emphasised that in order to develop the economy of the country, the Small and Medium Enterprises (SMEs) need to be uplifted. For instance, relief needs to be given to public transportation service providers as well as taxi drivers, while providing relief to tea and garment industries. A circular was issued on 15 May 2021 by the Monetary Board of CBSL, preventing the banks and financial institutions from collecting vehicle leases and loans from businesses or individuals due to the pandemic till the end of the month of August 2021.  


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