Alliance Finance Company PLC (AFC) has entered a Memorandum of Understanding (MoU) with Lanka E-Mobility Solutions (Pvt) Ltd (LeMS) to make the conversion of petrol-powered three-wheelers to electric more accessible to owners across Sri Lanka.
Through this partnership, AFC will offer preferential leasing facilities to customers seeking to convert their existing three-wheelers to electric, while LeMS will undertake the conversions and provide batteries on a rental basis. By combining financing solutions with an alternative to purchasing a battery outright, the initiative aims to reduce the financial barriers to adopting electric mobility.
For most three-wheeler owners in Sri Lanka, their vehicle is more than a mode of transport; it is their primary source of income. With daily operating expenses, particularly fuel and maintenance, putting pressure on their earnings, the transition to electric mobility presents an opportunity to minimize costs while continuing to earn a livelihood.
However, the initial investment required to convert a conventional three-wheeler to electric, together with the cost of a battery, can be a significant obstacle for many owners.
The AFC-LeMS partnership seeks to address these challenges through a combination of preferential leasing and a battery rental model, making the transition more financially accessible.
A Practical Approach to Electric Conversion
LeMS converts existing petrol-powered three-wheelers to electric by replacing the conventional engine with an electric drivetrain. Under its battery rental model, customers pay the conversion cost upfront, while LeMS provides the battery on a rental basis over an agreed period, typically three to five years, subject to the applicable terms and warranty.
This approach removes the need for customers to purchase the battery outright, helping spread the associated cost over time. AFC's preferential leasing facilities will further support customers in financing the conversion, creating a more accessible pathway to electric mobility.
According to LeMS estimates, owners could save up to LKR 40,000 per month through reduced fuel and maintenance expenses, depending on their daily mileage, operating conditions and applicable conversion and battery rental costs. These potential savings could help ease operating expenses and improve the financial sustainability of their livelihoods.
Commenting on the partnership, Mr. Romani de Silva, Deputy Chairman and Managing Director of Alliance Finance Company PLC, stated:
“At Alliance Finance, we believe sustainable finance should create meaningful change in people's everyday lives. This partnership is about more than financing electric vehicles. Further, this partnership directly contributes to one of AFC’s strategic goals - “drive towards sustainable mobility solutions”. Converting fossil fuel Tuk Tuks to electric, we promote mobility decarbonization and aligns with environmental sustainability goals while meeting the growing demand for efficient, green transportation options. It is also about supporting livelihoods, helping customers move towards cleaner and potentially more economical transportation, and contributing to a more sustainable Sri Lanka. It reflects our purpose of, making the world a better place through sustainable finance.”
Ms. Natasha Silva, Director of Lanka E-Mobility Solutions (Pvt) Ltd, commented:
“For many three-wheeler owners, their vehicle is their livelihood. Our goal is to make the transition to electric mobility practical and accessible. By combining our conversion technology and battery solutions with Alliance Finance's financing expertise and branch network, we hope to help more Sri Lankans experience the benefits of electric transportation.”
The transport sector remains an important area for Sri Lanka's efforts to reduce greenhouse gas emissions, improve urban air quality and strengthen energy sustainability. Initiatives that make cleaner transport options more accessible can contribute to these broader objectives while creating practical benefits for vehicle owners.
Through this collaboration, Alliance Finance and LeMS aim to encourage the adoption of electric three-wheelers by addressing key financial and practical barriers to conversion. The partnership reflects a shared commitment to supporting livelihoods, promoting responsible mobility, and creating positive outcomes for customers, communities, and the environment.
