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• LEASING MARKET IN SRILANKA
• LEASING LAW IN SRILANKA
• REQUIREMENT OF HIRE-PURCHASE AGREEMENTS
• TAXATION OF LEASES IN SRILANKA
• GOODS AND SERVICES TAX PROVISIONS
• ACCOUNTING FOR LEASES

Leasing in Sri Lanka, like in many of its peer countries, owes its origin to the efforts of the International Finance Corporation ( IFC), Washington. The first leasing company in Sri Lanka, the Lanka Orient Leasing Company (now Lanka Orix Leasing Company) was set up in 1980 with IFC's equity participation, technical partnership from the Orient Leasing Co of Japan and domestic equity from the Bank of Ceylon. The company got going in January 1981. This is almost the time when leasing was taking roots in other developing Asian markets. In India, for example, the First Leasing Company was started in 1973, but the real leasing boom came only in 1983 when IFC decided to invest in a few leasing companies. From this viewpoint, Sri Lankan leasing is no younger than in India.

The success of the first comer soon attracted fresh entry. Mercantile Llyods Leasing Ltd. entered the scene in 1983, when development financial institutions set up by the State also undertook leasing and project financing.

In 1997, there were 19 leasing companies (members of the Equipment Leasing Association) in the country. Besides, some of the banks and financial institutions also added leasing divisions to their existing operations.

The growth of leasing in Sri Lanka is visible in the following Chart - note that the minor reduction in volumes in 1996-7 is reportedly due to drought and bad economic conditions, but later in 1997 and 1998, leasing is said to have grown at remarkable rates.

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