Regulatory Alerts2025-07-17 | Finance Business Act Direction No.02 of 2025Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
The Central Bank of Sri Lanka has issued updated directions under the Finance Business Act to establish standardized loan-to-value ratios for motor vehicle credit facilities. Effective 18 July 2025, the new framework supersedes five previous amendments from 2018 to 2021, streamlining regulatory compliance for financial institutions. By codifying precise lending limits, the directive mitigates credit risk while maintaining market liquidity for vehicle financing.
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