Regulatory Alerts2018-02-08 | Direction No. 2 of 2018Loan to Value Ratios for Credit Facilities granted in respect of Motor Vehicles
The Monetary Board of the Central Bank of Sri Lanka issued Directions No. 02 of 2018 to regulate Loan to Value ratios for motor vehicle credit facilities granted by Licensed Finance Companies. Effective January 1, 2018, the directive sets maximum LTV percentages based on vehicle type, age, and power source, ranging from 25% for used three-wheelers to 90% for new electric commercial vehicles. The rules include specific exemptions for tourism and transportation fleets, mandate strict valuation procedures, and revoke previous 2017 directions.
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