Regulatory Alerts2018-09-28 | Banking Act Directions No. 6 of 2018Measures to Curtail Import of Motor Vehicles
The Central Bank of Sri Lanka has directed licensed commercial and specialised banks to implement new Loan-to-Value ratios ranging from 50% to 90%, depending on vehicle type and registration age, effective 1 October 2018. Concurrently, banks must suspend opening letters of credit for motor vehicle imports under the government's concessionary permit scheme until further notice. These measures aim to curb excessive motor vehicle imports and mitigate their adverse impact on the national exchange rate.
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