President orders Police to stop vehicle seizures by leasing companies

• Govt. circular states instalments suspended for 6 months, so commandeering vehicles against the law, says PMD

As the method adopted by the leasing companies to seize vehicles of those who had failed to pay their loan instalments is unlawful, no room should be left to continue this practice, President Gotabaya Rajapaksa has ordered the Police.  Leasing companies do not inform the Police prior to such seizing. They lodge complaints only after taking over the vehicle. This kind of forceful action sometimes leads to grave violence. As such, President Gotabaya Rajapaksa has instructed the Acting IGP Chandana Wickremaratne not to entertain complaints received from the leasing companies after seizing, the President’s Media Division said in a statement.

Under the package of concessions offered to the public affected by COVID -19, recovery of leasing instalments from three-wheeler owners was suspended for six months. It was clearly stated in Section 2 of the Circular 16/2020 issued on 23 March under the signature of the Secretary to the President. 

In this context, seizing of vehicles for not paying the instalment is a breach of the Government order. The President informed the Police not to allow vehicles to be seized on the grounds of non-payment of instalments.

FHA releases statement condemning murder of Three Wheel Association Chairman  

The Finance Houses Association (FHA) yesterday released a statement condemning the murder of Three Wheel Association Chairman Sunil Jayawardena. 

The full statement is as follows.

The Finance Houses Association of Sri Lanka (FHA), in its capacity as the apex association of 41 registered licensed finance companies, deeply condemns the alleged murder of the late Sunil Jayawardena, the Chairman of the Lanka Self-Employed Professional’s Three Wheel Association, which took place on Wednesday (10 June) evening. 

The murder of late Sunil Jayawardena is an example of unethical and unruly practices adopted by fraudulent organisations and the alleged finance institution Chanmil Investment Ltd. is by no means associated with the 41 regulated and licensed finance Institutions registered under the Central Bank and also not attached to the FHA.

As such, FHA denounces the actions of the said fraudulent organisation and the uncalled-for tragedy that accompanied their actions.

FHA compromises 41 licensed finance companies across Sri Lanka, with a long-standing history in the industry, and was formed with the aim of addressing the emerging problems in an unregulated environment that the deposit taking and lending companies operated that had given way for many fraudulent and unethical practices adopted by certain institutions that ‘claim’ to be finance institutions. 

FHA further clarified that the 41 licensed finance companies attached to FHA have already offered debt moratorium as stipulated by the Government, in line with Circular No. 04 and 05 of 2020 issued by the Central Bank, instructing to provide relief measures and assist the general public with their financial borrowings due to the COVID-19 pandemic and the financial difficulties that accompanied the global crisis. 

While complying with debt moratorium regulations, the licensed finance companies have offered debt relief to approximately 500,000 customers across Sri Lanka. Under such context, FHA reiterates its condemnation of the perturbing actions by the said unregulated and unlicensed lending organisation, which has resulted in the loss of an invaluable human life.