Regulatory Alerts2025-07-17 | Finance Leasing Act Directions No.01 of 2025Added · Updated
Loan to Value Ratios for Credit Facilities Granted in Respect of Motor Vehicles
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.
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