Regulatory Alerts2018-10-01 | Direction No. 9 of 2018Measures to Curtail Import of Motor Vehicles
The Central Bank of Sri Lanka issued Directions No. 09 of 2018 under the Finance Business Act to curb motor vehicle imports and mitigate adverse exchange rate impacts. Effective 1 October 2018, licensed finance companies must adhere to strict Loan to Value Ratios that vary by vehicle type, age, and power source, with electric vehicles generally permitted higher leverage than other categories. These measures replace previous guidelines by capping credit facilities at specific percentages of market value, ranging from 25% for older non-electric three-wheelers to 90% for commercial and new electric vehicles.
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