Sri Lanka revises loan to value ratios for vehicles, EV limit reduced

Central Bank Imposes New Caps on Vehicle Loan-to-Value Ratios for Financial Institutions - LNW Lanka News Web

The Central Bank of Sri Lanka (CBSL) has issued a directive to all Licensed Financial Institutions (LFIs), imposing revised maximum loan-to-value (LTV) ratio caps on vehicle-related credit facilities, with effect from July 18. The new directive applies to Licensed Commercial Banks, Licensed Specialised Banks, Licensed Finance Companies (LFCs), and Registered Finance Leasing Establishments (RFLEs), aiming to standardize and tighten vehicle financ…

CBSL revises vehicle LTV ratios, tightens credit access for EVs

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Sri Lanka revises loan to value ratios for vehicles, EV limit reduced

ECONOMYNEXT – Sri Lanka’s central bank has issued a direction to banks and finance companies, revising loan to value ratios for vehicles, reducing electric vehicle credit limits to match others cars effective from July 18. The directions are issued to “enhance macroprudential policy making, mitigating systemic risks and harmonizing existing caps on LTV ratios to a large extent and reinforcing prudential credit standards,” the central bank said i…