September 27, Colombo (LNW): Sri Lanka Police have clarified that their role in the repossession of vehicles and other assets under leasing arrangements is limited to maintaining public order, and officers will not take part in physically recovering the property.
In a statement issued on the 26th, the Police Media Division said leasing and finance companies must follow the procedures set out in the Finance Leasing Act No. 56 of 2000 when seeking to recover vehicles or other equipment covered by lease agreements.
Police officers have been briefed through official circulars on the relevant provisions of the law, according to the statement.
Under the procedure, a lessor or an authorised representative may notify the police in advance and request assistance to prevent a disturbance while possession is being obtained. However, officers will not themselves seize or remove the vehicle or equipment.
A lessor can proceed with repossession where the lessee does not resist. If the lessee objects or physically resists the process, the matter must instead be taken before the appropriate District Court, as provided for under the Finance Leasing Act.
Police also warned that lessors or their agents could face legal consequences if they disregard the requirements of the Act. Complaints from lessees will be accepted where property has been recovered outside the prescribed legal process, with police investigations to follow.
If an investigation establishes that additional offences, such as theft, robbery or criminal trespass, have occurred, the relevant legal action will be taken.
The police further stressed that their authority in such cases applies to leasing arrangements covered by the Finance Leasing Act. The law does not provide similar powers for police intervention in hire-purchase disputes governed by the Consumer Credit Act No. 29 of 1982.
Authorities have called on both lessees and finance companies to honour their contractual obligations, follow the applicable legal procedures and avoid actions that could lead to public disorder.
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