Leasing Upturn

Nov 30, 2009 (LBO) – People’s Leasing Company, Sri Lanka’s largest leasing firm, says demand for new leases is picking up with interest also from former war-torn regions, especially in the East of the country. “We think there is some appetite for credit now and we have witnessed some growth in credit and we are optimistic that this trend will continue in future,” People’s Leasing chief executive DP Kumarage said.

“Now with peace setting in, even in the areas we were doing earlier, there’s more demand for credit which we didn’t witness in the last one year or so.”

He was speaking to senior business executives at the 05th LBR-LBO CFO forum.

In the year to March, People’s Leasing Company, a unit of state-run People’s Bank, had revenues of 7.15 billion rupees.

It is estimated to have about a 20 percent share in the country’s leasing market. In the year to March the firm disbursed 12.25 billion rupees in facilities.

The firm says monthly disbursements were now picking up again.

“We have witnessed an increase of 10 to 15 percent in demand for credit,” Kumarage said.

“I’m sure it’s the same with some other companies as well.”

Though firms are now issuing new leases many fi