Colombo: Sri Lanka's People's Leasing Co Ltd (PLC) has struck a deal with India's Ashok Leyland to import commercial vehicles worth Rs 300 crore.
The one-year deal allows PLC to open letters of credit up to Rs 300 crore, the firm's Chief Executive D P Kumarage said on Tuesday.
With Rs 1900 crore portfolio, PLC is currently Sri Lanka's biggest leasing companies commanding a 19 per cent market share.
Besides offering traditional forms of leasing, PLC has carved a niche in the bus leasing business.
Since 1996, the firm has muscled its way into the vehicle importing business, bringing down some 5,000 buses in the process.
"For a month, we import around 50 to 60 buses, mainly 52-seaters from India. We also import some cargo trucks," said Deputy Manager Udesh Gunawardena.
The import business, however, does not dry up PLC's finances like other importers, as it finds ready buyers through its leasing business.
"Buses account for some 40 per cent of our total portfolio. We have a strong average recovery rate of 95 per cent, with a non-performing portfolio of 4.67 per cent is one of the lowest in the industry," he added.
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