Which document proves my lease is fully settled?

A letter from the finance company, on its letterhead, addressed to the Commissioner of Motor Traffic, confirming the facility is settled and requesting cancellation of the absolute ownership, mortgage or lease entry.

Can I sell my car while a finance company is still listed as absolute owner?

In practice no — DMT will not process the ownership transfer to a new buyer until the absolute ownership entry is cancelled from your CR book first.

How much does it cost to remove absolute ownership from a CR book?

DMT's published fee schedule lists Rs. 300 for a change-of-attributes application as of November 2026, according to dmt.gov.lk, but confirm the exact amount at your Motor Traffic office since fees are revised from time to time.

What if my finance company has closed down or merged with another institution?

Ask the successor company or statutory administrator for the settlement/release letter — it should still be able to issue one referencing your old agreement and vehicle number.

Guide6 min read7 views

How to Remove Absolute Ownership From Your CR Book Before You Sell

Updated 10 November 2026 · Written by the Wahanaya.lk team

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If a finance company is still listed as the 'absolute owner' on your CR book, you must get them to confirm in writing that your lease or loan is fully settled, then take that letter plus your CR, VIC and NIC copy to a DMT office to have it cancelled before you can sell the car.

Key facts

A finance or leasing company is recorded as the absolute owner on your CR book until a lease, hire purchase or loan is fully settled — you are only the registered owner until then.
You cannot transfer the vehicle to a buyer while the absolute ownership entry is still active on the CR.
The finance company must give you a letter, on its official letterhead, addressed to the Commissioner of Motor Traffic, confirming the facility is settled and requesting cancellation.
You'll also need the original CR book, the Vehicle Identity Card (VIC), and a certified copy of your NIC.
This is handled under DMT's "change of attributes" service, which also covers removing a registered mortgage.
DMT's own fee schedule lists Rs. 300 for a change-of-attributes application, as of November 2026, according to dmt.gov.lk — confirm the current figure at the counter.
Once cleared, your CR book is updated (sometimes reissued) to show you as the sole owner, and only then can you proceed with an ownership transfer using the MTA 6/MTA 8 forms.
Start this process as soon as you make your final lease payment, well before you plan to advertise the car for sale.

What does "absolute owner" mean on a Sri Lankan CR book?

It means a finance company, not you, legally owns the vehicle. When you take a lease or hire purchase facility to buy a car, the CR book shows two names: you as the registered owner (the person who uses and insures the car) and the finance company as the absolute owner (the legal owner with first claim on the vehicle). This protects the lender — if you default, they can repossess the car because they, not you, hold legal title. The arrangement stays in place even after you've made every payment, until someone actually tells the Department of Motor Traffic (DMT) to remove it.

How do I know if the finance company is still listed as absolute owner?

Check your CR book itself — the absolute owner's name is printed on it alongside your name as registered owner. If you're not sure whether the entry was ever removed after you finished paying, you can check the vehicle's current registration details through DMT's online vehicle information service, or simply ask at your nearest DMT/provincial Motor Traffic office. Many sellers only discover the absolute ownership entry is still active when a buyer's broker or the DMT counter clerk flags it during an attempted transfer — which delays the sale. It's far better to check and clear this before you list the car.

What documents do you need to remove the absolute ownership entry?

Based on DMT's published requirements, you need:

The original Certificate of Registration (CR book) — not a photocopy.
The Vehicle Identity Card (VIC), if your vehicle has one.
A certified photocopy of your National Identity Card.
A letter from the finance company, on its letterhead, addressed to the Commissioner of Motor Traffic, stating that your facility on that specific vehicle (quoting the registration number) has been fully settled and requesting cancellation of the absolute ownership/lease/mortgage entry.

The finance company's letter is the document that actually unlocks the process — ask your lease officer for it (sometimes called a settlement letter, release letter or letter of discharge) as soon as your final installment clears, rather than waiting weeks.

Where and how do you submit the cancellation application?

Take all four documents to a DMT office. This "change of attributes" application can generally be lodged at your nearest provincial or district Motor Traffic office, or at the DMT head office at No. 341, Alvitigala Mawatha, Colombo 5. Counter hours at most offices run on weekday mornings, so plan to go early. The DMT reviews the finance company's letter against the CR, and once satisfied, updates the record to remove the absolute owner's name — your CR book is then amended or reissued to show you as the only owner on record.

How much does it cost and how long does it take?

DMT's fee schedule for change-of-attributes transactions lists a fee of around Rs. 300, as of November 2026, according to official DMT information — but fees get revised periodically, so ask the counter staff to confirm the exact amount on the day you apply. The department doesn't publish a fixed turnaround time for this specific service; in practice it depends on how busy the office is and whether your paperwork is complete on the first visit. To avoid a second trip, double-check that the finance company's letter correctly states your full name, NIC number and the vehicle's registration number before you submit it.

Can you sell your car before the absolute ownership is removed?

Not cleanly. DMT will not register a change of ownership to a new buyer while a finance company is still shown as absolute owner on the CR — the pending entry effectively blocks the MTA 6/MTA 8 transfer process. Some sellers try to get around this by having the buyer deal directly with the finance company's release letter during the transfer appointment, but this adds confusion and risk for both sides and can stall the sale at the DMT counter. The safer sequence is: settle the facility, get the release letter, clear the absolute ownership entry, and only then advertise and transfer the car. If you're mid-lease rather than fully paid off, that's a different situation with its own settlement figure from the finance company — speak to them first.

What if the finance company has closed or merged with another institution?

If your original finance company has closed, merged, or been taken over, its obligations and records normally pass to a successor institution or a court-appointed administrator. Contact that successor (or check with the Central Bank of Sri Lanka if you're unsure who took over) and ask them to issue the settlement/release letter referencing your old agreement and vehicle number. Keep your original lease settlement receipts and any closure correspondence — they'll help whoever issues the replacement letter confirm your facility was indeed paid off.

Checklist before you list the car for sale

Confirm your lease, hire purchase or loan is fully paid and get written confirmation from the finance company.
Collect the finance company's release/settlement letter addressed to the Commissioner of Motor Traffic.
Gather your original CR book, VIC, and a certified NIC copy.
Submit the change-of-attributes application at your nearest DMT or provincial Motor Traffic office.
Collect your updated CR book showing you as sole owner.
Only then move on to pricing and advertising — use price-check to see what similar models are going for, and post-ad to list your car once the paperwork is clean.

Clearing the absolute ownership entry early saves you from an awkward, stalled handover in front of a buyer. Before you meet anyone to sell, it's also worth a quick read of Wahanaya's safety tips for handling payment and paperwork safely, and browsing /vehicles to see how similar cars are listed. If you hit a snag with your specific finance company or DMT office, ask in the Wahanaya forum — other sellers who've been through the same process can often tell you what worked for them.

Sources

Questions

What does "absolute owner" mean on a Sri Lankan CR book?: It means a finance or leasing company legally owns the vehicle until the lease, hire purchase or mortgage is fully paid — you are only the registered owner/user until that entry is cancelled.
Which document proves my lease is fully settled?: A letter from the finance company, on its letterhead, addressed to the Commissioner of Motor Traffic, confirming the facility is settled and requesting cancellation of the absolute ownership, mortgage or lease entry.
Can I sell my car while a finance company is still listed as absolute owner?: In practice no — DMT will not process the ownership transfer to a new buyer until the absolute ownership entry is cancelled from your CR book first.
How much does it cost to remove absolute ownership from a CR book?: DMT's published fee schedule lists Rs. 300 for a change-of-attributes application as of November 2026, according to dmt.gov.lk, but confirm the exact amount at your Motor Traffic office since fees are revised from time to time.
What if my finance company has closed down or merged with another institution?: Ask the successor company or statutory administrator for the settlement/release letter — it should still be able to issue one referencing your old agreement and vehicle number.

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