Sri Lanka, May 28 -- Sri Lanka's tighter macroprudential restrictions on vehicle and gold-backed lending will benefit lenders' risk profiles, particularly those of finance companies, Fitch Ratings stated.

The Central Bank of Sri Lanka's (CBSL), lower loan-to-value (LTV) caps target two products that have expanded rapidly in recent years and represent a substantial share of mainly finance companies' balance sheets.

The tighter caps may also weigh on volumes and earnings growth, particularly for lenders with high exposure to these products, it said.

The LTV cap on motor car financing was lowered on 25 May 2026 to 60% from 70% for vehicles registered for over one year, and to 40% from 60% for unregistered vehicles and those registered for...