Question 1

What is vehicle leasing and how does it work?

Accepted Answer

Leasing is a financing method where you pay for the vehicle's depreciation plus interest over a fixed term. At the end, you can buy the vehicle for a residual value, return it, or refinance. Monthly payments are typically lower than loans.

Question 2

What's the difference between leasing and a loan?

Accepted Answer

With a loan, you own the vehicle and pay off the full price. With leasing, you pay for depreciation only. Leasing has lower monthly payments but you don't own the vehicle unless you pay the residual value at the end.

Question 3

What is residual value in leasing?

Accepted Answer

Residual value is the vehicle's expected worth at lease end. A Rs. 8M vehicle with 40% residual after 5 years has Rs. 3.2M residual. You pay for the Rs. 4.8M depreciation, not the full price.

Question 4

How much down payment is needed for leasing?

Accepted Answer

CBSL Directions No. 01 of 2026 cap financing at 40% of vehicle value for unregistered and nearly-new cars, SUVs, vans and three-wheelers — so a minimum 60% down payment applies. Commercial vehicles and vehicles registered over one year can be financed up to 60% (40% down). For a Rs. 8M car, expect at least Rs. 4.8M down.

Question 5

Which leasing companies operate in Sri Lanka?

Accepted Answer

Major providers include: People's Leasing, LOLC, Commercial Leasing, HNB Finance, Seylan Leasing, and Central Finance. Rates and terms vary - always compare multiple offers.

Question 6

Can I end a lease early?

Accepted Answer

Yes, but there are penalties. Early termination typically requires paying remaining payments or a settlement amount. Some providers allow transfer to another person. Check your contract terms.

Question 7

Why do the rates shown here say "indicative"?

Accepted Answer

Sri Lankan leasing is risk-priced per customer — no provider publishes a single rate. The CBSL Financial Customer Protection Framework requires every licensed finance company to publish a Key Facts Document (KFD) containing only a range (e.g. People's Leasing: 12–40%, Central Finance: 19–34%). Your actual quote depends on your CRIB credit report, the vehicle, tenure, and negotiation. The rates here are midpoints of published ranges — use them for comparison, then request quotes from 2–3 providers.

Question 8

How is my actual leasing rate decided?

Accepted Answer

Providers price each lease individually based on: your CRIB credit score and repayment history, income stability and debt-to-income ratio, the vehicle's age/type/resale value, the LTV ratio (higher down payment = better rate), and the chosen tenure. Two customers leasing the same car can receive rates 10+ percentage points apart — which is why KFDs only publish ranges.

Leasing Calculator

Lease Details

Summary

Amortization Schedule

Example: Rs. 8M vehicle, 60% down (CBSL LTV cap), 5 years

What This Calculator Does

Inputs and Assumptions

Frequently Asked Questions

Related Resources

Sources & methodology

How we calculate

CBSL — LTV ratio rules

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