Sri Lanka, May 25 -- The Central Bank of Sri Lanka (CBSL) states that the decision to limit Loan-to-Value (LTV) ratios for motor vehicles has come into effect from today (25).

The Governing Board of the CBSL has tightened the maximum Loan-to-Value (LTV) ratios applicable to credit facilities granted for motor vehicles and has also introduced a maximum LTV ratio for credit facilities secured by gold, effective from today (25).

These measures were taken by the CBSL in line with its macroprudential authority 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...