The Central Bank of Sri Lanka (CBSL) has appointed a three-member committee to examine and report on the irregularities and illegal activities of the finance and finance leasing businesses, and to make recommendations to curtail such activities. The decision has been taken in view of the recent developments in the finance leasing business. In response to the request made by the committee, more than 200 views, proposals, or complaints were received from the general public, civil organisations, financial sector associations, and other interested parties in the finance business and finance leasing business. The CBSL in a statement said that the committee has placed particular emphasis on the illegal and irregular activities in the finance leasing business and has identified two sets of activities in the business of finance leasing that require attention; namely, activities of the registered finance business and activities of the illegal operators. Further, the committee has identified that these activities mainly revolve around the problems related to the recovery of possession of equipment, abuse of the terms and conditions in the finance lease agreements entered into between the lessor and the lessee, as well as certain loopholes in the provisions of the Finance Leasing Act (No. 56 of 2000). Accordingly, the committee has recommended short-term and long-term proposals, of which the short-term proposals are expected to address the current problems by providing more efficient solutions to the problems identified, while the long-term proposals mainly focus on amendments to the Finance Leasing Act, it was stated. CBSL Director – Legal and Compliance Sirikumara Kudagama told The Sunday Morning that the committee had handed over the report to the CBSL Governor last week and that the CBSL would act according to the recommendations given by the committee. He also noted that the CBSL would internally strengthen the laws, particularly with regard to leasing companies, to enable taking stern legal action against illegal companies. “At present, the CBSL is taking necessary action against the complaints lodged with the CBSL, and the CBSL will evaluate the proposals made by relevant authorities and formulate necessary laws applicable to leasing companies,” Kudagama said. He further noted that the CBSL would initially take internal measures to control the leasing industry.