Regulatory Alerts2020-05-15 | Banking Act Directions No. 4 of 2020Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
The Central Bank of Sri Lanka mandates specific loan-to-value ratios for motor vehicle credit facilities extended by licensed commercial and specialized banks. The updated directions establish maximum financing percentages ranging from 50 to 90 percent based on vehicle category, registration status, and electric or hybrid classification, while requiring concessionary import permits to use proforma invoice values. These binding rules immediately supersede the May 2019 directions, standardizing credit limits for new, used, and locally assembled vehicles across all registered classes.
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