About Us
Our History
The Finance Houses Association of Sri Lanka’ (FHA) is the successor to the pioneering ‘The Ceylon Hire purchase & Finance Association’ formed in 1958. The association was formed to discuss the emerging problems in an unregulated environment that the deposit taking and lending companies operated that created a breeding ground for some of the Sri Lankan finance companies the adopt fraudulent and unethical practices; with total impunity.
The founding fathers, Messrs. F Harper & G.H. Montgomery (United Motor), A.C.Walker (Transport & General), Cyril .E. Perera (The Finance), Hayward Fernando (Alliance Finance), & Eardley de Silva (Arpico Finance) met at the Ceylon Chamber of Commerce to discuss the emerging problems in the finance industry. They formalized the group into an association under the name of ‘The Ceylon Hire purchase & Finance Association’ on 27th May 1958. Many Finance Companies opted not to join.
The Association was successively renamed ‘The Hire Purchase and Finance Association of Sri Lanka’(1977) and ‘The Finance Houses Association of Sri Lanka ( FHA) in 1986. The FHA was incorporated, under the Companies Act No. 17 of 1982, in July, 2001. Thereafter it was reregistered under the Companies act of _ of 2007. In the course of its history of 58 years, the FHASL has grown in form and stature to discharge a broad range of activities expanding its original objectives. Today it serves as the link between the authorities, the banking system and the finance community at large.
FHA Secretariat
From its inception in 1958, the Ceylon Chamber of Commerce has held the umbilical cord of the FHA, providing facilities for holding its meetings and discharging the Association’s secretarial functions. However as the fledgling FHA membership grew it established its own Secretariat in June 1986. For several years the new Secretariat was also housed at the Alliance Finance before it commenced its periodical rotation of premises to other venues including The Finance Company PLC Dehiwala,187, Ward Place, before shifting to its current location at 150/3 Ward Place Colombo 07 in June 2016.
Current Activities
FHA presently involved in conducting of staff training programs, action to project a more positive public image of the LFC community, and organizing social activities that would consolidates the camaraderie among the LFC community. The services provided include, guidance in implementation of regulations issued by Regulatory Authorities; representing the membership at discussion with officials of Central Bank, the Commissioner of Motor traffic, the Commissioner General of Inland Revenue, and the banking and financial community at large. Seminars, Workshops, training for the employees of our members are also organized on a regular basis. The Legal Circle of the Association provides a forum for the Legal Officers to discuss common legal issues, suggest amendments and improvements to the present laws and administration of justice and take concerted action. The annual Sports Festival has turned out to be an iconic project for the development of fellowship among employees of the FHA member companies.
Values
Among the more prominent contributions made by the FHASL to the finance industry would include;
The assistance rendered to the Institute of Chartered Accountants and the Commissioner General Inland Revenue, to ensure the smooth transition of the LFCs to the International Financial Reporting System (IFRS).
Publication of a common set of pro-forma agreements for leasing & Hire purchase in all three languages.
Lobbying for approval for LFCs to accept savings deposits commencing 2004.
The Finance Houses Consortium (Pvt) Ltd” was registered in March 1996 to attempt raise syndicated loans for smaller LFCs.
Adopting a Code of Conduct initially in 1990, and a more comprehensive ‘Code of Ethics’ in July 2012, with the concurrence of the Central Bank This was followed by the adoption of a subsidiary code for Code for Micro Finance Operations.
Credit Information Bureau. FHA had been canvassing for the right to release defaulter information to the public, and the Government provided for the release of such information, releasing credit institutions from the violation of banking secrecy provisions by creating the ‘Credit Information Bureau’ in 1990. FHA is a member of its Board.
LFC-HR Annual Symposium. FHA commenced the first of its annual ‘Get-Together of the LFC-HR managers’ held in March 2015, to develop mutual understanding and cooperation enabling the planning of joint training strategies on a common forum on a collective basis.
FHA in 2014 signed an MOU with the NDB Investment Bank, retaining them as the backed loan for the LFCs through a process of securitizing a pool of LFC lease assets for the purpose of raising a securitized & syndicated asset se receivables.
FHA has been canvassing the CBSL for an extension of CBSL Lender of Last Resort Facility to the LFCs. The Finance Sector Stability Committee of the CBSL has agreed in principle to consider liquidity support through its deposits insurance scheme.
FHA Annual Sports Festival. The FHA Annual Sports Carnival/Festival has now been held successively for eight years. A prime objective of the FHA Sports Festival is to provide a common forum for fostering fellowship, better understanding and brotherhood among employees serving rival companies. It includes track events and tournaments in volley ball, net ball, and cricket
Responding to the representations made by the FHA, the CBSL in 2004 commenced the publication of Registered LFCs and Leasing Associations in the country. It has been further reinforced by the creation of a Public Awareness Committee with includes two nominees from the FHA.
Publications of the FHASL. FHASL current activities are carried to the LFC employees through its publications. For a long time ‘FHASL Journal’ delivered this function. Eventually it ceased to come and a new publication designated ‘Update’ was in circulation. Later it was succeeded by ‘The Financier’. As of now The FHASL current publication is “The E News”. & ‘News Letter Bulletin keeps the employees informed.