Regulatory Alerts2017-06-02 | Finance Leasing Act Direction No. 3 of 2017Amendment to Directions on Loan to Value Ratios for Motor Vehicle Credit Facilities
The Central Bank of Sri Lanka issued Finance Leasing Act Directions No. 03 of 2017 to amend the Loan to Value (LTV) ratios for credit facilities granted for vehicle purchases. The directive updates interpretations of credit facilities and establishes specific LTV limits based on Department of Motor Traffic vehicle categories, setting ratios at 90% for commercial vehicles, 50% for motor cars and SUVs, 25% for three-wheelers, and 70% for other vehicles. These changes replace previous provisions in Directions No. 02 of 2017 to regulate financing terms for end-users acquiring vehicles.
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