Regulatory Alerts2018-06-07 | Direction No. 5 of 2018Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
The Central Bank of Sri Lanka issued Finance Leasing Act Directions No. 05 of 2018 to amend the Loan to Value ratios for motor vehicle credit facilities. The amendments exempt specific credit facilities from standard limits, including those for tourism and transportation companies purchasing vehicle fleets and for Government Agencies procuring vehicles via finance leasing. Supervisory Loan Companies are required to establish internal limits and adopt adequate risk management procedures when granting these exempted credit facilities.
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