Regulatory Alerts2017-06-02 | Finance Business Act Direction No. 4 of 2017Amendment to Directions on Loan to Value Ratios for Motor Vehicle Credit Facilities
The Central Bank of Sri Lanka issued Direction No. 04 of 2017 to amend the Loan to Value (LTV) ratios for motor vehicle credit facilities under the Finance Business Act Directions No. 03 of 2017. The directive updates the definitions of credit facilities and establishes specific LTV limits based on Department of Motor Traffic vehicle categories. These limits are set at 90% for commercial vehicles, 50% for motor cars, SUVs, and vans, 25% for three-wheelers, and 70% for other vehicles.
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