Do I still have to pay my lease if my leasing company's licence is cancelled?

Yes. When CBSL cancels a licence, it has directed borrowers to keep paying their dues on time, usually only into the company's own bank account, and to keep proof of every payment to avoid legal action.

Can my vehicle still be repossessed if the finance company is being wound up?

Yes. Your lease agreement stays valid during winding up, so missing instalments can still trigger repossession exactly as it would if the company were healthy.

Does the deposit insurance scheme cover my lease debt?

No. The Sri Lanka Deposit Insurance and Liquidity Support Scheme covers eligible depositors up to Rs. 1.1 million per institution. It does not reduce or cancel what a borrower owes on a lease.

How do I check if a leasing company is genuinely licensed before I sign?

Check the Registered Finance Leasing Establishments and Licensed Finance Companies lists on the Central Bank of Sri Lanka's (CBSL) website, cbsl.gov.lk.

Which Sri Lankan finance companies have had their licences cancelled recently?

In 2026, CBSL cancelled the licences of Nation Lanka Finance PLC (effective 3 July 2026) and The Finance Company PLC (notice dated 23 October 2026), and placed both into winding up.

Advice7 min read7 views

What Happens to Your Lease If the Finance Company Collapses in Sri Lanka?

Updated 3 November 2026 · Written by the Wahanaya.lk team

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Your lease does not disappear and you must keep paying as normal, usually straight into the company's own bank account, even if its licence is cancelled or it is being wound up. Stopping payments can still get your vehicle repossessed and can hurt your CRIB record.

What happens to your lease if the finance company collapses in Sri Lanka?

Your lease agreement does not get cancelled and your debt does not disappear. If the Central Bank of Sri Lanka (CBSL) cancels your leasing company's licence or puts it into winding up, you are still legally bound by the lease you signed, and you are still expected to pay your instalments on time. The only thing that usually changes is where and how you pay — not whether you owe the money.

This has actually happened in Sri Lanka in 2026. CBSL cancelled the licence of Nation Lanka Finance PLC effective 3 July 2026 after rescue efforts, including attempts to find a buyer, failed, and moved the company into winding up under the Banking (Special Provisions) Act (Daily FT, EconomyNext). CBSL also issued a notice cancelling the licence of The Finance Company PLC (TFC), dated 23 October 2026 (The Morning). In both cases, the regulator told borrowers directly what to do — and it was not "stop paying."

Key facts

CBSL can cancel a licensed finance or leasing company's licence and place it into winding up under the Banking (Special Provisions) Act when its financial position deteriorates beyond recovery.
Two recent examples: Nation Lanka Finance PLC (licence cancelled effective 3 July 2026) and The Finance Company PLC (cancellation notice dated 23 October 2026).
Nation Lanka Finance borrowers were told to pay only into a bank account held in the company's own name, keep records of every payment, and were warned of legal action for non-payment.
The Finance Company borrowers were told to pay through TFC's designated bank accounts or at the nearest TFC branch, and to get a receipt for every payment.
The Sri Lanka Deposit Insurance and Liquidity Support Scheme covers eligible depositors up to Rs. 1.1 million per institution — it does not touch what you owe as a borrower.
You can check whether a company is a genuine CBSL-registered finance leasing establishment or licensed finance company on CBSL's website before you sign anything.
Check current rules and any fresh CBSL notices before acting, as details are announced case by case — this changes, confirm at cbsl.gov.lk, as of November 2026.

Do you still have to keep paying if your leasing company loses its licence?

Yes. In both 2026 cases, CBSL's public instruction to borrowers was to keep servicing their facilities on time, not to pause payments while the company sorts itself out. The regulator explicitly warned that non-payment could lead to legal action against the borrower. Stopping payments because "the company is finished anyway" is one of the most common and costly mistakes people make — your lease contract and your obligation under it survive the lender's licence cancellation.

Who do you pay if the company is being wound up?

Pay into the bank account CBSL or the company tells you to use, and nowhere else. For Nation Lanka Finance, CBSL specifically said debtors must pay only through a bank account held in NLFP's own name — not to an agent, a staff member, or any third-party account someone claims is connected to the company. For TFC, borrowers were told to use the company's designated bank accounts or pay at the nearest branch. If you get a call or message asking you to pay into a personal account "temporarily," treat it as a scam and verify directly with the company's official branch or CBSL's notices first.

Does the mortgage on your CR book disappear if the company fails?

No. When you lease a vehicle in Sri Lanka, the leasing company's interest is noted on the vehicle's CR book, and that note stays until the debt is fully settled and the company (or whoever now holds its rights) releases it. A licence cancellation does not automatically clear this. If a company is wound up and its loan book is transferred, assigned, or handled by a liquidator, the right to collect your remaining instalments and to hold that CR book interest would normally pass with it — so the note on your CR book stays tied to the debt, not to the original company's licence status. Always get written confirmation and the CR book released once you've paid off a lease, whatever happens to the lender in between.

Can the company or a liquidator still repossess your vehicle during wind-up?

Yes, if you stop paying. Winding up does not freeze your lease agreement — it continues on its original terms unless CBSL or a court says otherwise. If you miss instalments, the usual lease remedies, including repossession, can still apply. This is exactly why continuing to pay matters: it protects both your vehicle and your CRIB record, which will still be affected by missed payments regardless of what is happening to the lender.

Does deposit insurance help you if you're the one who owes money?

No. The Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) protects people who had deposits with the finance company, covering up to Rs. 1.1 million per depositor per institution. It has nothing to do with borrowers. If you leased a vehicle through the company, your debt is unaffected by this scheme — it is a completely separate side of the company's business.

How do you check if a finance company is in trouble, or licensed at all?

Before you sign a lease, check CBSL's list of Registered Finance Leasing Establishments and Licensed Finance Companies on cbsl.gov.lk. This tells you whether a company is actually authorised to do finance leasing business in Sri Lanka. Once you have a lease, watch for CBSL press notices and mainstream business news (Daily FT, EconomyNext, The Morning) rather than rumours or social media posts, since CBSL has been the source that announces licence cancellations and gives borrowers direct instructions. If you're shopping around and want to compare what a sensible monthly payment should look like before you commit to any company, run the numbers on Wahanaya's leasing calculator first.

What mistakes do people make when their leasing company is in trouble?

The biggest one is stopping payments out of panic or the assumption that a collapsed company can't chase you. CBSL's own instructions in 2026 show the opposite — borrowers were explicitly warned of legal action for non-payment. The second mistake is paying into the wrong account because someone "representing" the company asks for it informally; always use the official channel named in CBSL's notice or the company's own verified branch. The third is assuming your CR book note clears itself — it doesn't, and you'll need to chase written proof of settlement and release later, whoever ends up holding the debt.

Checklist: if your leasing company's licence is cancelled

Keep paying your instalments on schedule — don't stop.
Pay only into the bank account named in the official CBSL notice or company announcement.
Keep receipts or bank transfer proof for every single payment, without exception.
Check CBSL's website and reliable business news for updates, not rumours.
Don't believe calls or messages asking you to pay into a "temporary" personal account.
Once the lease is fully paid off, get written confirmation and have the CR book interest formally released, and keep that document safely.
If you're worried about affordability going forward, compare your options using Wahanaya's leasing calculator and browse vehicles or check a fair price if you're considering switching vehicles.
If you're unsure what's happening with your specific company, ask other owners and get practical experience from the Wahanaya forum.

If your leasing company is ever in the news for the wrong reasons, the safest move is simple: keep paying on time, through the right channel, with proof — and get everything in writing once your lease is settled.

Sources

Questions

Do I still have to pay my lease if my leasing company's licence is cancelled?: Yes. When CBSL cancels a licence, it has directed borrowers to keep paying their dues on time, usually only into the company's own bank account, and to keep proof of every payment to avoid legal action.
Can my vehicle still be repossessed if the finance company is being wound up?: Yes. Your lease agreement stays valid during winding up, so missing instalments can still trigger repossession exactly as it would if the company were healthy.
Does the deposit insurance scheme cover my lease debt?: No. The Sri Lanka Deposit Insurance and Liquidity Support Scheme covers eligible depositors up to Rs. 1.1 million per institution. It does not reduce or cancel what a borrower owes on a lease.
How do I check if a leasing company is genuinely licensed before I sign?: Check the Registered Finance Leasing Establishments and Licensed Finance Companies lists on the Central Bank of Sri Lanka's (CBSL) website, cbsl.gov.lk.
Which Sri Lankan finance companies have had their licences cancelled recently?: In 2026, CBSL cancelled the licences of Nation Lanka Finance PLC (effective 3 July 2026) and The Finance Company PLC (notice dated 23 October 2026), and placed both into winding up.

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