Regulatory Alerts2017-01-13 | Banking Act Directions No. 1 of 2017Loan-to-Value Ratios for Credit Facilities in Respect of Motor Vehicles
The Central Bank of Sri Lanka’s Monetary Board has mandated maximum loan-to-value ratios for motor vehicle credit facilities granted by licensed commercial and specialized banks, effective 16 January 2017. The directive establishes tiered caps ranging from 25 percent for three-wheelers to 90 percent for commercial vehicles, with a uniform 70 percent limit for registered vehicles used for over one year. Banks must apply internal risk controls for exempted tourism and transportation fleets, while revoking prior 2015 directions to standardize vehicle financing practices.
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