Regulatory Alerts2017-02-15 | Banking Act Directions No. 2 of 2017Amendment to Directions on Loan-to-Value Ratios for Motor Vehicle Credit Facilities
The Central Bank of Sri Lanka has amended its Banking Act Directions to standardize loan-to-value ratios for motor vehicle credit facilities. The directive mandates market-based vehicle valuations and establishes tiered limits ranging from 25 percent for three-wheelers to 90 percent for commercial vehicles. It further defines qualifying tourism and transportation entities while permitting a 70 percent ratio for applications processed on or before January 16, 2017.
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