Amendment to Directions on Loan to Value Ratios for Motor Vehicle Credit Facilities

MONETARY BOARD
CENTRAL BANK OF SRI LANKA

02 June 2017 | FINANCE BUSINESS ACT DIRECTIONS | No. 04 of 2017

AMENDMENT TO DIRECTIONS ON THE LOAN TO VALUE RATIOS FOR CREDIT FACILITIES IN RESPECT OF MOTOR VEHICLES

The Directions 5.1 and 5.4 of the Finance Business Act Directions No. 03 of 2017 on Amendment to Directions on the Loan to Value Ratios for Credit Facilities in Respect of Motor Vehicles are amended by replacing the following:

5. Interpretations

5.1 Credit facilities shall mean finance leases, hire purchase facilities and all other credit facilities granted for the purpose of purchase or utilisation of vehicles by end-users.

5.4 The vehicle classes provided by the Department of Motor Traffic (DMT) may be categorized for the purpose of the Direction as in Table 1 below:

Table 1 – Categorization of DMT Vehicle Classes

Vehicle Category	Vehicle Class of DMT	LTV
Commercial vehicles	C1, C, CE, D1, D, DE, G1, G, J	90%
Motor Cars, SUVs and Vans	B (other than light trucks & single cabs)	50%
Three wheelers	B1	25%
Any other vehicle	A1, A, light trucks & single cabs categorized under B	70%

(Signature)

Dr. Indrajit Coomaraswamy
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka