Sri Lanka, May 24 -- The Governing Board of the Central Bank of Sri Lanka (CBSL) has tightened the maximum Loan-to-Value (LTV) ratios applicable to credit facilities granted for motor vehicles while also introducing a maximum LTV ratio for credit facilities secured by gold with effect from tomorrow (25).

These steps were taken by the CBSL in line with its macroprudential authority, in order to promote prudent lending practices, safeguard the resilience of financial institutions, and mitigate the potential build-up of systemic vulnerabilities, the Central Bank said in a statement.

The CBSL noted that in arriving at these decisions, the Governing Board took into consideration the recent significant growth in credit extended on account of ...