Regulatory Alerts2018-08-24 | Direction No. 6 of 2018Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
The Central Bank of Sri Lanka issued Finance Business Act Directions No. 06 of 2018 to amend existing Loan to Value ratio regulations for motor vehicle credit facilities. The amendments introduce exemptions from standard LTV limits for vehicle fleets used by tourism and transportation companies, government agencies procuring vehicles via finance leasing, and motorcycles purchased by public service field officers and teachers in difficult areas. Licensed Finance Companies are required to establish internal limits and adopt adequate risk management procedures when granting these exempted credit facilities.
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