Regulatory Alerts2018-02-08 | Direction No. 2 of 2018Loan to Value Ratios for Credit Facilities granted in respect of Motor Vehicles
The Central Bank of Sri Lanka issued Finance Leasing Act Directions No. 02 of 2018 to impose maximum Loan to Value ratios on credit facilities granted by Specialized Leasing Companies for motor vehicles. These regulations, effective from January 1, 2018, cap financing at 90% for new electric vehicles and commercial transport, while restricting non-electric passenger cars to 50% and used vehicles to 70%. The directive also exempts tourism and transportation companies from these limits for fleet purchases, provided the vehicles are not transferred within one year, and revokes previous 2017 directions.
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