– Laksanda Gunawardena Deputy General Manager- Marketing & Business Development
By Ruvini Jayasinghe
Laksanda Gunawardena joined People’s Leasing & Finance PLC in 2002 and had been the Head of Corporate Leasing for 10 years. He has over twenty years experience in the field of corporate and SME Financing, covering the areas of Credit, Marketing, Recoveries, Branch Development & Operations. He is presently serving as Deputy General Manager –Marketing & Business Development. In addition, Mr.Gunawardena serves as the General Manager for People’s Microfinance Limited, a Fully Owned Subsidiary of People’s Leasing & Finance PLC.
He holds a Masters Degree in Business Administration (MBA), MSc. in strategic Marketing and a Diploma in Credit Management from the Sri Lanka Institute of Credit Management and is an Associate Member of the same institute. Further, Mr. Gunawardena is a certified Management Accountant of CMA (Australia).
Q: People’s Leasing and Finance Company (PLC) is a market leader in the industry, controlling a large percentage of market share in the leasing market. How did the company reach this status?
People’s Leasing was established in 1996, with a modest capital base of LKR 10 million. In a relatively short period of 22 years this company rose to the top, edging out the big players to reach a leading position, sitting on a capital of Rs. 26 billion and asset base of the 164 billion. Our performance has so far won us two international ratings, one, a Fitch rating of B+ and another, Sovereign rating of B++ by Standard & Poor’s (International).
We revolutionized passenger transport by importing and leasing passenger buses to Sri Lanka. A totally untapped area at that time, the sector was neglected by the companies who dodged the high risk of lending to this sector. Company’s bold decision to tread unknown terrain and reach out to the grassroots have paved the way for a revolutionary entry & sufficient growth whilst also nurturing thousands of entrepreneurs from all around the country.
Q: Your views on the current Business Environment?
Banks generally have stringent requirements in processing credit services which a majority of our entrepreneurs are unable to meet. They have great ideas but are unable to obtain financing to see their fruition. Non-banking Financial Institutions (NBFI) play a pivotal role in assisting such a community. A large population of the country doesn’t have access to traditional banks. NBFIs take calculated risks in developing such clients to fulfil their economic & business dreams. The industry however had suffered due to multiple global & local issues such as restricted Loan to Value ratio (LTV), sluggish economic conditions, rupee devaluation, etc. The Financial Services sector has seen moderate credit growth. However maturity has to contend with interest rate volatility and factors mentioned above. Even though the climate is challenging, it holds
much promise of opportunity. We are preparing ourselves in the tough times to grasp the opportunities expected. We are pushing towards tech savvy products and processes, adding new products, customer service initiatives for convenience to speed of delivery via multiple channels to reach an expansive customer base.
Q: How is PLC facing the challenges discussed above?
The interest rate hike has tapered repayment capacity of customers and current volatility demands different alternative approaches. We have introduced extended lease / loan periods and variable rate lease and loans; our intention is to offer an affordable rental to customers. Further in order to meet short term financial requirements PLC introduced Gold Loan and Short-term Business Loans; with an option for capital settlement. On all the Long Term loans we introduced, customers have both options of reducing the lease term or lowering the rental by infusing excess cash when available with them. PLC has expanded its basket of offerings by adding variable Housing Loans, Educational Loans & Long-Term Business Loans, while strengthening its Islamic Finance business.
Q: What are the key elements of the Islamic Finance Operation?
Our Al Safa Islamic Financial Services Unit (IFU) carries Islamic Financing Products (Ijarah, Murabaha, Musharakha, Wakalah) and Islamic Investment Products (Mudharabah Savings Account, Usfoor minor Savings Account, Mudharabah Investment Account, Short Term Mudharabah Investments Account.) People’s Leasing & Finance PLC’s (PLC) Al Safa Islamic Financial Services Unit (IFU) secured multiple awards at the SLIBFI (Sri Lanka Islamic Banking and Financial Industry) for the fourth year and recently won top honors at the Islamic Finance Forum of South Asia (IFFSA) Awards. We also won the Gold Award for Social Upliftment, and received the Bronze Award for Islamic Finance Product of the Year.
Q: What are the significant developments of your deposits / savings growth initiatives?
The growth of our deposits and savings base is significant in the recent past. People’s Leasing has the best savings base in the NBFI sector in Sri Lanka. This is testimony to customer confidence in us. The new fixed deposit scheme and savings products that we have launched in the recent past are unique in the market. Our affiliation to People’s Bank a household People’s brand, with solid brand attributes of trust, state affiliated security, and unmatched ability combined with the People’s Bank Group’s exclusive reach across the country, and our customer centric approach has differentiated us from the usual clutter in the industry. Further we have introduced ‘Senehasa’ Future Investments plan which has been designed for a customer to set aside a fixed amount of savings every month (“fixed monthly installment”) on behalf of a child and an Adults Super Investment Plan, designed for a customer to set aside a fixed amount of savings every month.
Q: What are the Innovation and Technological change impacts to NBFI sector?
We have an international award-winning team that has developed a new mobile application platform and internet based banking. These initiatives will continuously bring cost down and enable PLC to maintain its position as the cost leader in the market. We recently won international recognition for our selfie cash product – a tech based investment which can be described as a deposit loan scheme, from the “Asia Pacific Tech Award (APITCA)” .
Q: People’s Leasing has a strong Corporate Social Responsibility framework. Can you explain how your CSR initiatives operate?
People’s Leasing & Finance PLC as a responsible corporate citizen invests 2.5% from its profit on Corporate Social Responsibility initiatives. The five focused areas in CSR include Environment Sustainability, Road Safety & Post Accident Care, Upliftment of Education, Enterprise Development & Financial Literacy Building and Creating Sustainable Communities with employee participation through our island wide branch network. PLC was recognized as one of the Ten Best Corporate Citizens in the Country at the Best Corporate Citizens Awards Organized by Ceylon Chamber of Commerce of Sri Lanka. PLC was also the Gold award winner at the Best Annual Report Awards 2017 for its outstanding commitment on corporate social responsibility reporting category. PLC also was a merit award winner of the Ian Dias Abeysinghe Memorial Awards at the JASTECA CSR/Sustainability Awards – 2017 presented by the Japan-Sri Lanka Technical and Cultural Association (JASTECA). PLC was classified in the Gold Category STING Consultants in their Corporate Accountability Rating. bmd