Regulatory Alerts2015-09-14 | Finance Business Act Direction No. 1 of 2015Loan to Value Ratio for Loans and Advances in respect of Motor Vehicles
The Monetary Board of the Central Bank of Sri Lanka issued Finance Business Act Direction No. 01 of 2015 to regulate lending practices for motor vehicle financing. Effective 15 September 2015, Licensed Finance Companies are prohibited from granting loans or advances exceeding 70 percent of the market value of the motor vehicle. The directive defines the vehicle value based on professional valuation and includes finance leases and hire purchase facilities within the scope of regulated loans.
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