Regulatory Alerts2025-07-17 | Banking Act Direction No. 03 of 2025Loan to Value Ratios for Motor Vehicle Credit Facilities
The Central Bank of Sri Lanka has issued Banking Act Directions No. 03 of 2025 to update loan-to-value ratios for motor vehicle credit facilities. Effective 18 July 2025, the new rules revoke three prior directives from 2018 and 2020 that previously set lending limits for motor vehicles. Grounded in Sections 46(1) and 76J(1) of the Banking Act, the framework standardizes risk-based lending caps to maintain financial stability in motor vehicle financing.
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