Leasing, Hire purchase:

Disbursements to top Rs 190 b

With positive economic outlook:

Charumini de Silva

The local leasing and hire purchase industry is targeting over Rs 185 billion disbursements for this year with the favourable economic condition in the country. Leasing Association of Sri Lanka (LASL) Chairman Sanjeewa Bandaranayake said the disbursements which were about Rs 105 billion last year will increase to about Rs 185 to 190 billion from the figures they see up to now.

The total outstanding from finance lease and hire purchase increased from about Rs 240 to Rs 340 billion.

“There was a positive direct impact from the favourable economic environment that has benefited the industry commendably,” he said.

The finance leasing and hire purchase industry has grown by over 80 percent in the past financial year ending March 31 as far as new disbursements are concerned.

He said the performance of the industry is remarkable and it was beyond expected results. “We are confident that the finance sector will perform well and keep the impetus.

The reduction of duty helped to increase the economic activities.

Therefore, the sale of commercial vehicles increased drastically,” he said.

The key sectors that contributed to the growth of the industry were service sector by 27 percent, trading by 21 percent and transport by 13 percent.

“The leasing industry has seen a remarkable improvement continuously and the industry is experiencing the growth,” Bandaranayake said.