Regulatory Alerts2015-09-14 | Banking Act Directions No. 2 of 2015Loan to Value Ratio for Motor Vehicle Loans and Advances
The Monetary Board of the Central Bank of Sri Lanka has mandated a maximum 70 percent loan-to-value ratio for motor vehicle financing granted by licensed commercial and specialised banks. Effective 15 September 2015, this requirement covers finance leases and hire purchase facilities, capping loan amounts at 70 percent of the vehicle's professional market valuation. Issued under the Banking Act, the directive limits credit exposure to ensure overall banking system soundness.
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