Sri Lanka Police warn leasing firms against forced vehicle repossessions

The Sri Lanka Police says leasing and finance companies cannot forcibly repossess vehicles or other leased equipment and must seek a District Court order if the lessee resists taking possession.

In a press release dated September 26, 2026, Police said the Finance Leasing Act, No. 56 of 2000 sets out the procedure that lessors, including leasing companies and finance companies, must follow when taking possession of vehicles and other equipment subject to finance leasing.

Police officers have already been informed through instruction circulars about the legal provisions applicable under the Act.

When a lessor or an authorized representative gives prior notice and requests police protection, the Sri Lanka Police may provide assistance only for the purpose of maintaining the peace.

However, police officers will not intervene in the actual repossession of a vehicle or other equipment.

A lessor may take possession of a leased vehicle or equipment only when there is no resistance from the lessee. If the lessee resists the repossession, the lessor must file a case in the District Court in accordance with the Finance Leasing Act.

Police said a lessor or the lessor’s representative commits an offence if they act contrary to the provisions of the Finance Leasing Act, No. 56 of 2000.

If the required procedure is not followed, police stations will accept complaints from lessees and conduct investigations.

If an investigation reveals another offence, such as robbery, theft or criminal trespass, the Sri Lanka Police will take legal action in relation to that offence.

Police also stressed that while officers may act in accordance with the Finance Leasing Act in matters involving finance lease agreements governed by that Act, there are no provisions allowing similar police intervention in relation to hire-purchase agreements governed by the Consumer Credit Act, No. 29 of 1982.

The Sri Lanka Police requested all parties to act in accordance with agreements entered into through leasing companies and finance companies and to maintain the peace.