Finance and leasing companies that repossess vehicles or equipment by force risk criminal prosecution, Sri Lanka Police said on Saturday, issuing a public clarification of the procedure laid down in the Finance Leasing Act No. 56 of 2000.
Police Media Spokesperson Assistant Superintendent of Police F. U. Wootler said companies recovering property over missed instalments must act strictly within the law, Hiru News reported.
The procedure
Under Section 27 of the Act, a lessor must notify the Officer-in-Charge or Headquarters Inspector of the police station covering the area before repossessing property. That notification is what allows the company to request police presence to prevent a breach of the peace.
Where the person holding the property does not resist, the lessor may take it back peacefully. If there is resistance, the company may not seize the property — it must apply to the District Court for an order of possession.
What the police will and will not do
Officers do not take part in the repossession itself, the Daily Mirror reported. Their role is limited to maintaining public order, and only where protection was requested in advance.
The Daily Mirror added a limit Hiru’s account does not carry: police involvement applies only to agreements under the Finance Leasing Act. There is no provision for police involvement in repossessions under hire-purchase agreements governed by the Consumer Credit Act No. 29 of 1982.
Police said officers have already been instructed on the provisions through official circulars, and that complaints from lessees over unlawful repossessions will be accepted and investigated. Where an investigation establishes offences such as robbery, theft or criminal trespass — Hiru’s account also lists forcible entry and seizing property through threats — action will be taken against the leasing company or its agents.
Not reported
Neither outlet says what prompted the clarification, how many complaints police have received, or whether any leasing company or agent is currently under investigation. Neither names a specific incident, and no figures are given for repossessions carried out this year.
