How to Transfer Ownership After Paying Off a Lease in Sri Lanka

Key facts

• Your finance company is listed as "absolute owner" on your CR book during the lease. You are the "registered owner" — the user, not yet the full legal owner.
• When the lease is fully settled, the finance company must send the Department of Motor Traffic (DMT) a letter on its letterhead, addressed to the Commissioner of Motor Traffic, confirming the facility is settled and asking for the absolute ownership entry to be cancelled. The vehicle number must be stated on this letter.
• You need the letter plus your CR book (Certificate of Registration), your Vehicle Identity Card (VIC) if one was issued, and a certified copy of your NIC to take to the DMT.
• This is a cancellation of absolute ownership/mortgage, not a buyer-to-seller ownership transfer — so the MTA 6 and MTA 8 forms used in a normal sale do not usually apply here.
• A fee applies for processing the cancellation; DMT has listed a one-day-service fee of around Rs. 2,500 for cancelling absolute ownership or a mortgage entry, but confirm the exact figure at dmt.gov.lk or by calling 1919, as of October 2026, since DMT fee schedules change.
• This applies whether you paid the lease to full term or settled it early — the trigger is "fully settled," not "term ended."
• Once the entry is removed and you get your updated CR book, you are the sole legal owner and can sell, mortgage, or re-lease the vehicle freely.

What does "absolute owner" mean on your CR book?

It means the finance or leasing company legally owns the vehicle as security for your facility, even though you are named as registered owner and you are the one driving it, insuring it, and paying its revenue licence. Under the Motor Traffic Act, the lessor (the leasing company) is treated as the absolute owner until the facility is settled and that status is formally cancelled at the DMT. Until that cancellation happens, the vehicle is not fully yours on paper — you cannot sell it, and a buyer's ownership history check at the RMV will still show the finance company's name.

How do you know your lease is actually settled?

Ask your leasing company or bank for a written settlement confirmation once your final payment (or early-settlement payout) clears. This should state the facility number, the vehicle's registration number, and the date the obligation was fully discharged. Don't rely on a verbal "you're done" from a branch officer — get it in writing, because this document is the trigger for the next step and you may need it again later if a buyer or the RMV ever questions the vehicle's history.

What letter must the leasing company give you?

The DMT requires a letter from the financial institution, on its own letterhead, addressed to the Commissioner of Motor Traffic. It must:

• Confirm that your lease/finance facility on the vehicle has been fully settled.
• Request cancellation of the mortgage, absolute ownership, or lease entry on the CR.
• State the vehicle's registration number (this is compulsory — a letter without it will be rejected).

Some companies call this a "letter of discharge," a "no-objection letter," or simply a "settlement and release letter." The name varies by institution, but the content must cover those three points. Ask your leasing officer directly for "the letter to cancel absolute ownership at the DMT" so there's no confusion about what you need.

What documents do you need to remove the finance company from the CR book?

Gather these before you go to the DMT or your nearest RMV office:

• The original CR book (Certificate of Registration).
• The Vehicle Identity Card (VIC), if your vehicle has one — this mainly applies to vehicles with older-style number plates that needed an identity card issued separately.
• A certified photocopy of your NIC.
• The leasing company's settlement/release letter addressed to the Commissioner of Motor Traffic.

If your vehicle also had a separate mortgage registered (for example, a bank loan rather than a lease), the same principle applies: the bank's letter confirming settlement is what unlocks the cancellation.

Where do you submit these documents?

You can submit the cancellation request at the DMT head office in Narahenpita, Colombo, or at your relevant provincial/district Registration of Motor Vehicles (RMV) office. Some leasing companies handle the DMT submission themselves as part of their settlement process and simply hand you the updated CR book once it's done — ask whether this is included in your facility's closing procedure, since it can save you a trip.

How long does the cancellation take?

Processing time depends on which office you use and whether you choose a one-day service (available at certain DMT locations for an extra charge) or the normal service through a district office, which can take longer because the updated CR book is sent by registered post. If you need the clean CR book urgently — for example, because you're about to sell the vehicle or apply for a new lease — ask specifically about the one-day service option when you submit.

Is there a fee to cancel the absolute ownership entry?

Yes, there is a DMT charge for this service, separate from the stamp duty and class transfer fee charged on a buyer-to-seller ownership transfer. Because fee schedules are revised from time to time, don't rely on an old number from a forum post — check the current charge at dmt.gov.lk or by calling the government information line 1919 before you go, as of October 2026.

What if the leasing company delays giving the letter?

This is one of the most common complaints people raise in the Wahanaya forum and elsewhere: the lease is paid off, but the branch is slow to issue the letter. If this happens to you:

• Put your request in writing (email or a letter handed in at the branch), quoting your facility number, vehicle registration number, and settlement date.
• Ask for a specific date by which the letter will be ready.
• Escalate to the company's customer relations or complaints desk if there's no response within a reasonable time.
• Keep copies of everything — settlement confirmation, your written requests, and any replies — in case you need to show a timeline later.

What should you check on the new CR book?

Once the DMT processes the cancellation, check the new CR book carefully before you leave the counter or as soon as it arrives by post:

• The absolute owner section should now be blank, or should no longer show the finance company.
• Your name and NIC number as registered owner should be correct and unchanged.
• The vehicle's engine number, chassis number, and registration number should match the old CR book exactly.

Any mismatch should be raised at the counter immediately rather than after you leave.

What should you do next?

With a clean CR book, you're free to sell, use the vehicle as collateral for a new facility, or simply keep it worry-free. If you're thinking about selling, you can check what similar vehicles are going for with price check, browse current listings on /vehicles, and when you're ready, list it yourself on /post-ad. If you're instead thinking of leasing a different vehicle next, the leasing calculator can help you work out a realistic monthly payment before you commit. And if anything about your specific case is unclear — a joint facility, a company-owned vehicle, or a settlement dispute — ask in the Wahanaya forum, where other owners who've been through the same DMT process can point you in the right direction.

Sources

• Department of Motor Traffic - Registration of Ownership Transfer
• Department of Motor Traffic - Charges for Registration of Ownership Transfer
• How to Transfer Vehicle Ownership Correctly - MotorGuide.lk
• motortraffic.gov.lk Registration Of Ownership Transfer Sri Lanka
• Sri Lanka Vehicle Ownership Transfer Fee Calculator (2026)
• Vehicle Registration & Transfer — Apply, Fees & Helpline in Sri Lanka (2026)