Vehicle owners who have leased their vehicles should know what leasing and finance companies can do when seeking to repossess a vehicle.
The Sri Lanka Police has clarified that police officers do not take part in the actual repossession of leased vehicles.
The Police Media Division said lessors and their authorised representatives must follow the procedures set out under the Finance Leasing Act No. 56 of 2000 when seeking possession of leased property.
What Can Police Do During Repossession?
Police officers can provide protection to maintain public order when a leasing company or its authorised representative gives prior notice and requests police assistance.
However, police officers cannot physically take possession of the vehicle or other leased equipment.
A lessor can repossess leased property when the lessee does not resist the process.
If the lessee resists, the lessor must seek legal remedies through the relevant District Court under the Finance Leasing Act.
What Can Vehicle Owners Do?
The Police Media Division said lessees can complain to the police if a vehicle is repossessed in a way that does not follow the required legal procedure.
Police will investigate such complaints.
If the investigation establishes offences such as robbery, theft or criminal trespass, the police will take appropriate legal action.
The police also said any lessor or authorised agent who violates the provisions of the Finance Leasing Act commits an offence.
Leasing and Hire-Purchase Agreements Are Different
The police also clarified that these rules apply to agreements covered by the Finance Leasing Act.
The Consumer Credit Act No. 29 of 1982 does not contain similar provisions that allow police intervention in hire-purchase agreements, according to the Police Media Division.
The police urged both vehicle owners and leasing and finance companies to follow the terms of their agreements and take steps to maintain public peace.
Last modified: September 27, 2026
