Regulatory Alerts2025-07-17 | Finance Leasing Act Directions No.01 of 2025Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
The Central Bank of Sri Lanka issued Finance Leasing Act Directions No. 01 of 2025 to establish updated loan-to-value ratios for motor vehicle credit facilities. Effective 18 July 2025, the directive supersedes five preceding amendments from 2018 to 2021 that previously regulated these lending limits. Issued under Section 34 of the Finance Leasing Act, the new framework standardizes risk assessment and capital allocation for financial institutions extending motor vehicle loans.
CENTRAL BANK OF SRI LANKA 17 July 2025 | FINANCE LEASING ACT DIRECTIONS | No. 01 of 2025
LOAN TO VALUE RATIOS FOR CREDIT FACILITIES GRANTED IN RESPECT OF MOTOR VEHICLES
Issued under Section 34 of the Finance Leasing Act, No. 56 of 2000.
The following Directions issued under Finance Leasing Act are hereby revoked with effect from 18.07.2025:
i. Finance Leasing Act Directions No 02 of 2018 on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
ii. Finance Leasing Act Directions No 06 of 2018 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
iii. Finance Leasing Act Directions No 01 of 2019 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
iv. Finance Leasing Act Directions No 03 of 2020 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
v. Finance Leasing Act Directions No 02 of 2021 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
(Signature)
Dr. P Nandalal Weerasinghe Chairperson of the Governing Board and Governor of the Central Bank of Sri Lanka
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