Measures to Curtail Import of Motor Vehicles

28 September2018
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CENTRAL BAITK OF SRI LAI\KA
BAI\IK ST'PERVISION DEPARTMENT
BAI\IKING ACT DIRECTIONS No.06 of2018
MEASURES TO CURTAIL IMPORT OF MOTOR YEHICLES
Issued under Sections a6(l) and 76(J) (1) of the Banking Act, No. 30 of 1988, as amended. The Central Bank of Sri Lanka with a view to curtailing imports and the resultant adverse impact on the exchange rate requires licensed commercial banks and licensed specialised banks to adopt the following measures with effect from 0l October 2018.

1. The following will replace Directions 2.1 of the Banking Act Directions No. 0l of 2018 on
   Loan to Value Ratios for Credit Facilities Granted in respect of Motor Vehicles. Credit facilities granted by every licensed bank for the purpose of pruchase or utilisation of motor vehicles shall not exceed the following percentages of the market value of such vehicles until further notice. (i) In respect of unregistered vehicles which have been used in Sri La$ka for less than one yeax after the first regisfration;
   Table I - Loan to Value Ratio
   Commercial vehicles cl, c, cE, Dl, D, DE, Gl, G, J 9oo/o 90% Motor Cars, SUVs and Vans B (other than light trucks & sinsle cabs) 90% 50o/o Three wheelers B1 90o/o 25o/o Any other vehicle A1, A,lighttrucks & single cabs categorized under B 90o/o 70o/o Hybrid Motor Cars, Vans and SUVs B (other than light uucks & sinsle cabs) 50% (ii) 70 per cent in respect of registered vehicles which have been used in Sri Lanka for more than one year after the fust registration.
2. Refrain from opening of letters of credit for importation of motor vehicles under the scheme
   for issuance of motor vehicle permits on concessionary terms issued by the Govemment of N-.---= Chief Executive Oficer/Senior Deptty Governor of the Central Bank of Sri Lanka, Sri Lanka until further notice.