Regulatory Alerts2019-05-31 | Banking Act Directions No. 4 of 2019Loan to Value Ratios for Motor Vehicle Credit Facilities
The Central Bank of Sri Lanka has issued Banking Act Directions No. 04 of 2019 to establish standardized loan-to-value ratios for motor vehicle credit facilities extended by licensed commercial and specialized banks. The directive replaces previous guidelines by mandating vehicle-specific LTV percentages ranging from 50% to 90%, depending on registration status, vehicle class, and whether the asset is electric or conventional. It further specifies that concessionary import permits must calculate LTV based on proforma invoice values and formally withdraws the 2018 directions on motor vehicle import curtailment measures.
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