RegAlert

Rule · CBSL · 17 Jul 2025 · Finance Business Act Direction No.02 of 2025

Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles

credit

The Central Bank of Sri Lanka has issued updated directions under the Finance Business Act to establish standardized loan-to-value ratios for motor vehicle credit facilities. Effective 18 July 2025, the new framework supersedes five previous amendments from 2018 to 2021, streamlining regulatory compliance for financial institutions. By codifying precise lending limits, the directive mitigates credit risk while maintaining market liquidity for vehicle financing.

Sri LankaCentral Bank of Sri Lanka

CENTRAL BANK OF SRI LANKA
17 July 2025 | FINANCE BUSINESS ACT DIRECTIONS | No. 02 of 2025

LOAN TO VALUE RATIOS FOR CREDIT FACILITIES GRANTED IN RESPECT OF MOTOR VEHICLES

Issued under Section 12 of the Finance Business Act, No. 42 of 2011.

The following Directions issued under Finance Business Act are hereby revoked with effect from 18.07.2025:

i. Finance Business Act Directions No. 02 of 2018 on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
ii. Finance Business Act Directions No. 06 of 2018 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
iii. Finance Business Act Directions No. 02 of 2019 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
iv. Finance Business Act Directions No. 03 of 2020 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.
v. Finance Business Act Directions No. 02 of 2021 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.

(Signature)

Dr. P Nandalal Weerasinghe
Chairperson of the Governing Board and
Governor of the Central Bank of Sri Lanka

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Lineage: In force

Amendments to Directions on Loa…2021Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles (2021-02-17)FBAD Directive No. 2 of 2018FBAD Directive No. 2 of 2018FBAD Directive No. 2 of 2019FBAD Directive No. 2 of 2019FBAD Directive No. 3 of 2020FBAD Directive No. 3 of 2020FBAD Directive No. 6 of 2018FBAD Directive No. 6 of 2018Loan to Value Ratios forCredit Facilities Granted in …2025-07-17 · this documentLoan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles (2025-07-17)
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Timeline

This document supersedes: Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles

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Source: Central Bank of Sri Lanka — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

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