Regulatory Alerts2017-02-17 | Finance Business Act Direction No. 3 of 2017Amendment to Directions on Loan to Value Ratios for Motor Vehicle Credit Facilities
The Monetary Board of the Central Bank of Sri Lanka issued Direction No. 03 of 2017 to amend the interpretations within Direction 5 of the Finance Business Act Directions No. 01 of 2017. The amendment establishes specific Loan to Value (LTV) limits for various vehicle categories, setting caps at 90% for commercial vehicles, 50% for motor cars and SUVs, 25% for three-wheelers, and 70% for other vehicles. It also defines vehicle valuation methods, clarifies terms for fleet and tourism companies, and permits a 70% LTV for applications received or approved on or before 16 January 2017.
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