Vehicle Pact

Sept 23, 2010 (LBO) – Sri Lanka’s SMB Leasing has struck a deal with Lanka Ashok Leyland, the local unit of the Indian vehicle manufacturer, to distribute its vehicles in the former north-east war zone, a statement said. Under the agreement SMB Leasing is to be the sole agent for Lanka Ashok Leyland in Sri Lanka’s northern and eastern provinces, it said in a stock exchange filing.

The leasing firm will undertake distribution of the entire range of vehicles imported by Lanka Ashok Leyland, sell spares and provide after sales service and repairs.

The island’s 30-year ethnic war ended in May 2009, leading to an economic revival and increased demand for vehicles, especially buses.

Last month Ashok Leyland said Sri Lanka’s state-owned People’s Leasing Company had ordered 1,000 Indian buses worth 26 million US dollars to meet post-war demand for passenger travel.