Regulatory Alerts2020-04-24 | Finance Leasing Act Directions No. 3 of 2020Amendments to Loan-to-Value Ratio Directions for Motor Vehicle Credit Facilities
The Central Bank of Sri Lanka has amended its Loan-to-Value ratio directions for Specialized Leasing Companies granting credit facilities for motor vehicles. The updated regulations replace prior 2019 directives and establish maximum loan-to-value percentages ranging from 50% to 90%, determined by vehicle category, registration class, and whether the asset is electric or hybrid. Credit facilities for unregistered or recently registered vehicles (under one year) are capped at 90%, while those for older used vehicles are limited to 70% of market value.
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