Regulatory Alerts2019-06-28 | Banking Act Directions No. 5 of 2019Amendments to Loan-to-Value Ratio Directions for Motor Vehicle Credit Facilities
The Central Bank of Sri Lanka has amended its Banking Act Directions to establish an 80 percent loan-to-value ratio for unregistered non-electric Class B motor cars. This provision specifically applies to vehicles financed under the Mini Taxi concessionary loan scheme of the Enterprise Sri Lanka programme. The amendment formally inserts a new regulatory clause into the existing framework, thereby expanding credit facility eligibility for qualifying motor vehicles.
CENTRAL BANK OF SRI LANKA BANK SUPERVISION DEPARTMENT
28 June 2019 | BANKING ACT DIRECTIONS | No. 05 of 2019
AMENDMENTS TO DIRECTIONS ON LOAN TO VALUE RATIOS FOR CREDIT FACILITIES GRANTED IN RESPECT OF MOTOR VEHICLES
Banking Act Directions No. 04 of 2019 on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles are amended as follows:
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The following Direction is inserted immediately after Direction 1(i)(b) of the Banking Act Directions No. 04 of 2019 on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles and shall have effect as Direction 1(i)(c).
1(i)(c) 80 per cent in respect of unregistered non-electric motors cars (Class B) which are purchased under the ‘Mini Taxi’ concessionary loan scheme of the ‘Enterprise Sri Lanka’ programme.
(Signature)
Dr. Indrajit Coomaraswamy Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka