Regulatory Alerts2019-06-04 | Finance Leasing Act Direction No. 1 of 2019Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
The Central Bank of Sri Lanka issued Directions No. 1 of 2019 to establish new loan-to-value ratios for credit facilities granted by Specialized Leasing Companies for motor vehicles. The directive sets maximum lending percentages based on vehicle type, registration status, and fuel classification, distinguishing between new and used vehicles as well as electric and other types. Additionally, the Central Bank mandates that loan-to-value calculations for concessionary imports be based on proforma invoice values and explicitly withdraws the previous Finance Leasing Act Directions No. 07 of 2018.
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