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Rule · CBSL · 17 Jul 2025 · Finance Leasing Act Directions No.01 of 2025

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

credit

The Central Bank of Sri Lanka issued Finance Leasing Act Directions No. 01 of 2025 to establish updated loan-to-value ratios for motor vehicle credit facilities. Effective 18 July 2025, the directive supersedes five preceding amendments from 2018 to 2021 that previously regulated these lending limits. Issued under Section 34 of the Finance Leasing Act, the new framework standardizes risk assessment and capital allocation for financial institutions extending motor vehicle loans.

Sri LankaCentral Bank of Sri Lanka

CENTRAL BANK OF SRI LANKA
17 July 2025 | FINANCE LEASING ACT DIRECTIONS | No. 01 of 2025

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

Issued under Section 34 of the Finance Leasing Act, No. 56 of 2000.

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

i. Finance Leasing Act Directions No 02 of 2018 on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.

ii. Finance Leasing 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 Leasing Act Directions No 01 of 2019 on Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles.

iv. Finance Leasing 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 Leasing 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…2018Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles (2018-08-24)FLAD Directive No. 1 of 2019FLAD Directive No. 1 of 2019FLAD Directive No. 2 of 2018FLAD Directive No. 2 of 2018FLAD Directive No. 2 of 2021FLAD Directive No. 2 of 2021FLAD Directive No. 3 of 2020FLAD Directive No. 3 of 2020Loan 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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