Police Clarify Role in Vehicle Repossession Under Finance Leasing Law

Sri Lanka Police have clarified that their role in the repossession of vehicles and other equipment under lease agreements is limited to maintaining public order when police protection is formally requested.

In a statement issued today (26), the Police Media Division said the procedure for lessors, including leasing and finance companies, to obtain possession of vehicles and other equipment subject to lease financing is governed by the Finance Leasing Act No. 56 of 2000.

The Police said all officers have been informed through official circulars of the relevant legal provisions under the Act.

According to the statement, police will intervene solely to maintain public order when a lessor or an authorised representative provides prior notice and requests police protection. Police officers, however, do not participate in the actual repossession of vehicles or other equipment.

A lessor may take possession of leased property only when the lessee offers no resistance. If resistance is encountered, the lessor is required to initiate legal proceedings before the relevant District Court in accordance with the provisions of the Act.

Police said any lessor or authorised agent who acts in violation of the Finance Leasing Act commits an offence.

Where a repossession is carried out contrary to the prescribed legal procedure, lessees may lodge complaints with the Police, who will conduct investigations. If the investigations reveal other offences, including robbery, theft or criminal trespass, appropriate legal action will be taken.

The Police further clarified that their authority to intervene in such matters applies only to lease agreements governed by the Finance Leasing Act No. 56 of 2000.

They said there are no corresponding provisions authorising police intervention in hire-purchase agreements governed by the Consumer Credit Act No. 29 of 1982.

The Police urged all parties to comply with the terms of their agreements with leasing and finance companies and to take steps to preserve public peace during any repossession process.