Lease agreement to purchase vehicles

By Jayampathy JAYASINGHE

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Lessees can now purchase vehicles without hassle following a new vehicle leasing policy launched last week.

Rata Yogaya, is the latest vehicle leasing policy launched by three leading players in the country, viz the People's Leasing Company, the Janashakthi Insurance Company and Midland Riora. A Memorandum of Understanding (MoU) in relation to the new lease agreement was signed by the People's Leasing Company, the Janashakthi Insurance Company and Midland Riora company.

People's Leasing Company's Chief Executive Officer (CEO) D.B. Kumarage said they were the market leader during the past six years despite 72 players operating in the leasing market. The other players are commercial banks, development banks and finance companies.

Being a subsidiary of the People's Bank, the PLC was in a stronger financial position and the MoU signed with Janashakthi and Midland Riora was in the pipeline for several months, he said.

Referring to Riora Midland Company, he said, the company had sold more than 700-800 Chinese vehicles during the past three years. "We added value by signing an MoU with Janashakthi Insurance company for the benefit of its customers." Answering questions, Kumarage said the leasing package was flexible and would apply to vehicles purchased from the Midland Riora company.

Janashthi Insurance's General Manager, Ravi Liyanage said under the new leasing policy, lessees will be protected by Janashakthi's insurance scheme in the event of death.

The total capital outstanding will be paid to the leasing company, thus transferring the ownership of the vehicle to its dependants. The new leasing package includes an attractive insurance premium where a 45 per cent discount will be given to its customers. In addition, a lessee will also enjoy full options of the Janashaksthi insurance. The Rata Yogaya was a total solution package for leasing of motor vehicles.

He said the People's Leasing Company was aggressive in its approach when it came to product development. "We have had a relationship with them during the past few years. The new leasing package should be a winner considering its flexibility," he said.

Chairman, Midland Riora Group, Nimal Ekanayake said their company was celebrating its 60th year in business.

He took over the mantle of family business after the demise of his father and floated the company, Midland Riora Group in 1996.

The Midland Riora Group initially imported used vehicles from Japan and Singapore.

But owing to the high cost of maintenance and spare parts they switched to China and began importing quality vehicles. In 2005 Midland Riora signed an agreement with the Chinese automobile giant, Nanjing Automobile Group Corporation. Midland Riora is the sole distributor of Yuejin vehicles in Sri Lanka from the Nanjing Automobile Corporation of China.

The first company to launch a Chinese vehicle in Sri Lanka its sales office is at Katugastota, Kandy. The Midland Riora Group has a stock of imported vehicles valued at Rs 450 million. The company has a fully equipped garage to service its vehicles.

Deputy General Manager Operations, K. M. M. Jabir, Consultant Athula Disssanayake, Assistant General Manager and (AGM) Janshakthi Insurance, Suresh Basnayake were present.