By end financial year 2011:

Leasing industry to reach Rs 280 b

Shirajiv SIRIMANE

The leasing industry is growing at a rapid pace and the total value of the portfolio is expected to reach Rs 280 billion by the end of the 2011 financial year. The value of the industry last financial year ending last March was Rs 200 billion and it is expected to grow around 40% this year.

According to statics from the industry, over 75 percent of both new and reconditioned vehicles are sold through leasing and with the ending of the war there is an increased demand for leasing from the north-east sector as well.

Bartleet Finance Chief Internal Valuer-Certified Engineer, Isuru Senaratne said that Sri Lanka may be the only country in the world where the value of second-hand vehicles are appreciating. He said that the north- east demand is one of the main reasons for this factor while the irregular VAT and tax regulations imposed by the government also adds value to second-hand vehicles.

The decision by the government to stop the import of vehicles older than three years also have added value to the second hand market, Senaratne said.

He said that when it comes to leasing the valuers play a key role and unfortunately Sri Lanka only has 73 accredited valuers registered with the Leasing Association of Sri Lanka when the requirement is double.

He explained that the valuer should have a sound knowledge of a motor vehicle as there are so many aspects that have to be looked in to. The valuer should know if the vehicle is forged, or if the engine is an original, or if it is budded or illegally assembled.

Senaratne who is also a Certified Automotive Engineer from the UK, explained that there are instances where the engine and chassis numbers are engraved in Sri Lanka cleverly replacing the originals and a knowledgeable valuer would be able to detect it.

He said companies like De Silvas and Godwin Yapa are two leaders who provide valuations and assessments of vehicles and more such companies are needed.

An associate member of Institute of Automotive Engineers he said that a valuer in addition to having technical knowledge should also have experience in the motor field. He said that the LASL is now looking at this aspect seriously.

He said that in a bid to provide customers a genuine vehicle Bartleet Group introduced the RiyaPola concept where buyers are meeting with sellers.

The concept introduced by General Manager Sampath Nishantha also provides technical support through their valuers and technicians who are at the venue. Successful RiyaPola’s were hosted in Horana, Hambantota and Homagama and Embilipitiya and over 300 vehicles ranging from motor bikes to lorries were traded.

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