Regulatory Alerts2018-06-07 | Direction No. 5 of 2018Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
The Central Bank of Sri Lanka issued Finance Business Act Directions No. 05 of 2018 to amend the Loan to Value ratios for motor vehicle credit facilities. The amendments exempt specific credit facilities from standard limits, including those for tourism and transportation companies purchasing vehicle fleets for core operations and government agencies procuring vehicles via finance leasing. Licensed Finance Companies must establish internal limits and adopt adequate risk management procedures when granting these exempted credit facilities.
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