Advice7 min read4 views
Updated 30 October 2026 · Written by the Wahanaya.lk team
There's no single rule — most banks stop leasing vehicles at around 7-10 years old, some finance companies go up to 14 years, and a few will finance popular models up to 30 years old subject to conditions. Check with the specific company before you buy.
There's no fixed number written into law. It depends entirely on which bank or finance company you approach. Most licensed commercial banks are conservative and tend to avoid leasing registered vehicles older than roughly 7-10 years, because an older vehicle is harder to value and resell if you default. Licensed finance companies are usually more flexible. Commercial Credit & Finance PLC, for example, states that for its vehicle loan product the manufacturing year of a registered vehicle must be within 14 years of the disbursement date, while brand new or unregistered vehicles have no such restriction. Central Finance Company PLC goes further, saying it will finance "popular" used vehicles up to 30 years old, as long as the vehicle has an established market value and a clearly identifiable owner.
In practice, this means a 1990s Toyota Corolla or an old Datsun double cab can sometimes still get leasing — but only through specific finance companies, and usually with more paperwork, not through every bank on Galle Road.
Banks generally hold stricter risk policies because leasing is a smaller part of their overall lending book, so they prefer newer vehicles with predictable resale value. Licensed finance companies that specialise in vehicle leasing (regulated by the Central Bank of Sri Lanka under the Finance Business Act) build their whole business around valuing used vehicles accurately, so they're comfortable taking on older, well-known models — think a Toyota Hiace van or a Nissan Vannette that holds its value in Colombo, Kandy or Kurunegala — as collateral. The trade-off is that approval depends heavily on the vehicle's condition, mileage and a proper valuation, not just your income.
Check both. A lender might advertise a tenure of up to 6 or 7 years (as DFCC and Janashakthi do) and a vehicle age limit separately, but the two interact: if a company won't finance a vehicle past, say, 15 years of age, a vehicle that's already 10 years old might only get a 4-5 year lease, not the full term. This "age at end of lease" rule is one of the most common reasons people are surprised their lease offer is shorter than they expected. Always ask the officer directly: "What's the maximum age this vehicle can be when the lease ends?"
As of October 2026, the Central Bank of Sri Lanka's loan-to-value (LTV) directive, effective from 25 May 2026, sets how much of a vehicle's market value a bank or finance company can lend against. For personal vehicles — cars, SUVs, vans and three-wheelers — that are unregistered or have been registered for less than a year, the cap is 40% of market value, meaning you need to put down at least 60% yourself. For vehicles that have already been registered in Sri Lanka for more than a year, the cap is higher, at 60%, so your minimum down payment is 40%. Commercial vehicles (light trucks, single cabs and similar) are capped at 60% either way. CBSL introduced this as a tightening of 10 percentage points from the previous caps, citing concerns about rapid growth in vehicle financing and pressure on the exchange rate from vehicle imports.
The practical effect for someone looking at an older, already-registered car: you may actually be able to borrow a larger share of its value than you could for a brand-new import, because the cap for already-registered vehicles is higher. But these percentages are set by CBSL directive and can change again, so confirm the current cap with your bank or on the Central Bank's website before you plan your down payment. Use the leasing calculator to see what a given down payment and term would cost you monthly.
Expect to provide more than you would for a brand-new vehicle:
Before you commit to buying, check the vehicle's listing and condition carefully on /vehicles, and use /price-check to see whether the asking price matches what similar vehicles are selling for — a valuer's figure and the market price can differ, and that gap affects how much you can actually borrow.
Yes, banks and finance companies lease motorcycles the same way they lease cars. Since 25 May 2026, CBSL rules require at least 60% down payment on a brand-new bike and 40% on one registered over a year, plus your NIC, income proof and the bike's papers.
Wahanaya.lk team7 min read
Yes. Private limited companies, partnerships and sole proprietors can all lease a vehicle in Sri Lanka, but on top of the normal lease papers, the finance company will want your business registration documents, director or partner NICs, and usually a director's personal guarantee.
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Yes, most Sri Lankan leasing companies let you pick your own insurer, but the insurer must be acceptable to them, cover must be comprehensive, and the leasing company's interest must be noted on the policy for the whole lease term.
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