Capital Reach ventures into real estate, pawning

Anjana Samarasinghe

Capital Reach Leasing will venture into real estate and pawning businesses this year.

Assistant General Manager of Capital Reach Leasing Devika Gunasekera said they have embarked on their first property development project and expect to enter into the local housing market too.

"As a finance company we see that pawning is a very lucrative business in Sri Lanka and expect to venture into real estate and pawning during this year," she said.

Capital Reach also introduced their first investment savings account Itumina to the market. "We are targeting the middle income level groups through this new product.

After conducting several marketing surveys we found that most of the middle income level customers are unable to save money due to high fuel cost and the inflation rate. They keep on postponing saving money during their young age and there was a necessity in the market for a product like Itumina to address this issue," she said.

"We have several fixed deposit products and with the launch of the new investment saving account, the company is targeting a Rs 600 million deposit base by end of this year. At the moment the company has a Rs 300 million deposit base.

"As a registered finance company our main business is leasing, hire purchase and providing loans," she said.

The local leasing market is very competitive and in 2005 recorded a 30 per cent growth.

However last year growth was slow due to the economic condition in the country. But there is a huge growth potential in the leasing sector and we see many companies now venturing into this lucrative business in Sri Lanka," she said.

Capital Reach has recorded 50 per cent overall growth compared with last year and in the last four years, the company reported 400 per cent.

Capital Reach plans to establish two new branches during this year and at the moment they are finalising the locations for their new branches.