With the cessation of the 30-year ethnic war and with the economic stability the growth momentum in the country was maintained and the economy grew by as much as 8%. The Central Bank of Sri Lanka has been positive in continuously reviewing and bringing interest rates and inflation levels under control.
This direction enabled the financial sector to become stable and grow which contributed to the economy in a very positive manner. This significantly assisted the leasing industry in the country to record a remarkable growth in the last two years was the view of Roshan Nanayakkara CEO Sampath Leasing & Factoring Limited.
Sampath Leasing & Factoring Limited (SLFL) is a fully owned subsidiary of Sampath Bank PLC, which is incidentally the largest subsidiary of the bank. Nanayakkara opined “that the leasing industry performance is essentially cyclical where periods of increased profits is correlated to stable economic conditions that ensures low delinquency rates amongst borrowers and predictable/stable interest rates which in turn stabilises net interest margins and reduces provisioning.”
Nanayakkara is optimistic about the future of the Leasing industry and further stated that Specialised Leasing Companies (SLC) should become a conduit in serving sectors such as Agriculture, Tourism and Construction by funding assets that compliments these sectors. It is only then that they could be termed as SLCs.
Nanayakkara also emphasised about the rapid expansion that SLFL has initiated, by opening customer service points within the Sampath Bank branch network. Finance lease and Factoring of trade receivables is generally perceived to be financial instruments that caters the SME and the individual sectors, and in this context the parent company has chosen SLFL to operate independently to support a clientele, which is hitherto not explored by the bank due to its risk appetite and its regulatory structure.
The day 20 September is a significant day for SLFL said Nanayakkara as it opens four more service points at Anuradhapura, Kuliyapitiya, Kegalle and Ratnapura. SLFL has an array of products to suit all Finance lease needs in these areas.