Regulatory Alerts2018-08-23 | Banking Act Directions No. 5 of 2018Amendment to Directions on Loan-to-Value Ratios for Motor Vehicle Credit Facilities
The Monetary Board of the Central Bank of Sri Lanka amended its Banking Act Directions to modify Loan-to-Value ratios for motor vehicle credit facilities. The updated rules exempt standard LTV limits for tourism and transport companies purchasing operational vehicle fleets, government agencies utilizing specified finance leasing, and public service field officers or teachers acquiring motorcycles under concessionary leasing programs. Licensed banks must establish internal limits and implement robust risk management procedures to govern these exempted credit facilities.
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